Rates & thresholds
These are the figures every calculator on this site is built from.
Income Tax — England, Wales & Northern Ireland| Band | Taxable income | Rate |
|---|
| Personal Allowance | £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Income Tax — Scotland| Band | Taxable income | Rate |
|---|
| Personal Allowance | £12,570 | 0% |
| Starter Rate | £12,571 – £15,397 | 19% |
| Basic Rate | £15,398 – £27,491 | 20% |
| Intermediate Rate | £27,492 – £43,662 | 21% |
| Higher Rate | £43,663 – £75,000 | 42% |
| Advanced Rate | £75,001 – £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
National Insurance (Class 1, employee)| Band | Earnings | Rate |
|---|
| Below Primary Threshold | Up to £12,570 | 0% |
| Main rate | £12,571 – £50,270 | 8% |
| Above Upper Earnings Limit | Over £50,270 | 2% |
Student & Postgraduate Loan repayment| Plan | Threshold (annual) | Repayment rate |
|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 (Scotland) | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate Loan | £21,000 | 6% |
Cross-checked against HMRC, gov.scot and the Low Incomes Tax Reform Group at time of writing. Rates can change with fiscal events — always confirm against HMRC for anything binding.
Glossary
- Personal Allowance
- The amount of income you can earn each tax year before paying any Income Tax — £12,570 for most people in 2026/27, tapered away entirely by £125,140.
- Salary sacrifice
- An arrangement where you give up part of your salary in exchange for a benefit — usually a pension contribution — before tax and National Insurance are calculated, reducing both.
- Adjusted net income
- Your total taxable income after certain reliefs, used to work out things like the Personal Allowance taper above £100,000 and Child Benefit charge thresholds.
- Plan 1–5 (student loans)
- The different UK student loan repayment plans, each with its own repayment threshold, depending on where and when you studied. Postgraduate Loans are repaid separately, alongside any Plan 1–5 loan.
- The 60% trap
- The informal name for the effective marginal tax rate between £100,000 and £125,140, created by the Personal Allowance being withdrawn at £1 for every £2 earned on top of the 40% Higher Rate.
- BR tax code
- A tax code that taxes all of an income source at Basic Rate (20%) with no Personal Allowance applied — commonly used for a second job, reconciled against your combined income at year end.
- Employer National Insurance
- A separate National Insurance charge paid by your employer on top of your salary — 15% above a £5,000 annual threshold in 2026/27 — which doesn't come out of your pay but is part of what you cost to employ.
Common questions
- What is the Personal Allowance for 2026/27?
- £12,570 — the amount you can earn before paying any Income Tax. It reduces by £1 for every £2 you earn over £100,000 and reaches zero at £125,140.
- What are the Income Tax rates for England, Wales and Northern Ireland in 2026/27?
- 20% Basic Rate up to £50,270, 40% Higher Rate up to £125,140, and 45% Additional Rate above that, all after your Personal Allowance.
- What are the Scottish Income Tax rates for 2026/27?
- Scotland uses six bands: 19% Starter, 20% Basic, 21% Intermediate, 42% Higher, 45% Advanced, and 48% Top — different thresholds from the rest of the UK, so Scottish taxpayers often pay a different amount at the same salary.
- What are the National Insurance rates for 2026/27?
- Class 1 employee National Insurance is 8% on earnings between £12,570 and £50,270, then 2% above £50,270 — the same across all of the UK.
- What is the student loan repayment threshold for Plan 2?
- £29,385 a year. You repay 9% of everything you earn above that threshold, and Postgraduate Loans are repaid separately at 6% above £21,000.