UK income tax and National Insurance 2026/27: rates and take-home pay
The personal allowance is still £12,570, the bands are frozen, and National Insurance stays at 8% and 2%. Rates for 2026/27, the 60% trap above £100,000 and worked examples.
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. The personal allowance and most income tax thresholds remain frozen, so as pay rises, more of it is taxed at higher rates, a process often called fiscal drag. This guide sets out the UK income tax rates and National Insurance for 2026/27, explains the £100,000 tax trap, and shows how much take-home pay you keep at different salaries.
Income tax in England, Wales and Northern Ireland
The personal allowance is £12,570, and income up to that amount is taxed at 0%. The basic rate of 20% applies to income from £12,571 up to £50,270. The higher rate of 40% applies from £50,271 to £125,140, and the additional rate of 45% applies above £125,140. Wales sets its own rates through the Welsh rates of income tax, but for 2026/27 they match those in England and Northern Ireland.
Income tax in Scotland
Scottish taxpayers have six bands on earnings above the personal allowance: starter rate 19% up to £16,537, basic rate 20% up to £29,526, intermediate rate 21% up to £43,662, higher rate 42% up to £75,000, advanced rate 45% up to £125,140, and top rate 48% above that. Scottish income tax applies to earnings, while savings and dividend income are taxed at UK rates.
National Insurance for employees
Employees pay Class 1 National Insurance of 8% on earnings between £12,570 and £50,270 a year, and 2% on earnings above that. National Insurance is the same across the whole UK, including Scotland. Your contributions build entitlement to the State Pension and certain benefits; you need 35 qualifying years for the full new State Pension, as explained in our guide to the UK State Pension.
The £100,000 tax trap
The personal allowance falls by £1 for every £2 earned above £100,000, and it disappears completely at £125,140. In that range, each extra £1 you earn costs 40p in higher-rate tax plus another 20p because part of your allowance is lost: an effective tax rate of 60%, or 62% once National Insurance is added. Parents in this range can also lose tax-free childcare. Paying more into a pension, including through salary sacrifice, can bring your adjusted income back below £100,000 and restore the allowance.
Worked examples for 2026/27 (no pension or student loan)
Salary of £30,000. Income tax is 20% of £17,430, which is £3,486. National Insurance is 8% of the same amount, £1,394.40. Take-home pay is £25,119.60, about £2,093 a month.
Salary of £45,000. Income tax is £6,486 and National Insurance £2,594.40, giving take-home pay of £35,919.60. In Scotland, income tax is £6,882.05 and take-home pay £35,523.55.
Salary of £110,000. The personal allowance falls to £7,570. Income tax is £33,432 and National Insurance £4,210.60, leaving take-home pay of £72,357.40.
Add your pension contributions and student loan plan in our UK take-home pay calculator to see your exact figure.
Student loans and pension contributions
If you have a student loan, repayments are taken through payroll at 9% of earnings above your plan's threshold, or 6% for postgraduate loans. Pension contributions made through net pay or salary sacrifice reduce the income on which tax is charged, so both can make a noticeable difference to your monthly take-home pay.
Your tax code and payslip
Most employees have the tax code 1257L, which reflects the £12,570 personal allowance. If your code is different, HMRC may be collecting tax on benefits, untaxed income or an underpayment from a previous year. Check your code in your personal tax account on GOV.UK, and contact HMRC if it looks wrong, because an incorrect code can lead to paying too much or too little tax.
Ways to keep more of your pay
Workplace pension contributions get tax relief, and many employers add their own money; see our guide to workplace pensions and auto-enrolment. Saving in an ISA shelters interest and investment growth from tax. If you also have untaxed income, such as from self-employment, you may need to file a Self Assessment tax return.
Frequently asked questions
What is the personal allowance for 2026/27?
£12,570, which is reduced for income above £100,000.
What is the National Insurance rate in 2026/27?
8% on earnings between £12,570 and £50,270 and 2% above that.
When does the 2026/27 tax year end?
On 5 April 2027.
Sources
This article is general information, not financial advice.