Income tax rates 2026/27
England, Wales and Northern Ireland: Personal Allowance £12,570 at 0%, basic rate 20% on £12,571 to £50,270, higher rate 40% on £50,271 to £125,140, additional rate 45% above £125,140.
Scotland: starter 19% (£12,571–£16,537), basic 20% (to £29,526), intermediate 21% (to £43,662), higher 42% (to £75,000), advanced 45% (to £125,140) and top 48% above.
Your Personal Allowance falls by £1 for every £2 of adjusted net income over £100,000, so it is zero at £125,140. Between those figures the effective income tax rate is 60%.
National Insurance 2026/27
Employees pay Class 1 NI at 8% on earnings between £12,570 and £50,270 a year (£242 to £967 a week) and 2% above that.
Worked example
£30,000 salary in England: tax = 20% × (£30,000 − £12,570) = £3,486; NI = 8% × £17,430 = £1,394.40; take-home = £25,119.60 a year (£2,093.30 a month).
Frequently asked questions
What is the tax-free Personal Allowance for 2026/27?
£12,570, frozen until April 2031. It is reduced by £1 for every £2 of income over £100,000.
Why is my payslip slightly different?
Payroll works out tax and NI per pay period using your tax code, so monthly figures can differ by a few pounds. Bonuses, benefits in kind and a non-standard tax code also change the result.
Does salary sacrifice save National Insurance?
Yes. Salary sacrifice reduces your pay before both tax and NI. Net pay arrangements save tax but not NI.
Sources
- GOV.UK – Income Tax rates and Personal Allowances
- GOV.UK – Scottish Income Tax 2026 to 2027
- GOV.UK – Rates and allowances: National Insurance contributions
- GOV.UK – Repaying your student loan
Disclaimer: This calculator gives an estimate using official 2026/27 rates published on GOV.UK and devolved government sites (checked October 2026). It is not financial, tax or legal advice and may not cover every situation. Always check with the official source, HMRC, your lender or a qualified adviser before making decisions.