How much income tax will I pay in 2026/27?

Income tax depends on your earnings and tax band. The Personal Allowance is £12,570 (tax-free), then you pay 20% (Basic Rate) on £12,571–£50,270, 40% (Higher Rate) on £50,271–£125,140, and 45% (Additional Rate) above £125,140.

What is the Personal Allowance for 2026/27?

The Personal Allowance remains £12,570 for 2026/27. It's reduced by £1 for every £2 earned above £100,000, reaching £0 at £125,140.

How is National Insurance calculated?

Employees pay 8% NI on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Your employer pays an additional 15% on your earnings above £5,000.

UK Income Tax Calculator 2026/27: Calculate Your Take-Home Pay

For the full PAYE, NI, and take-home planning framework, see the UK Income Tax hub.

Use our income tax calculator to work out your take-home pay for 2026/27. Enter your gross salary to see a full breakdown of income tax, National Insurance, and your net pay.

2026/27 Income Tax Bands

Band	Taxable Income	Rate
Personal Allowance	£0–£12,570	0%
Basic Rate	£12,571–£50,270	20%
Higher Rate	£50,271–£125,140	40%
Additional Rate	Over £125,140	45%

The Personal Allowance is reduced by £1 for every £2 earned above £100,000, creating an effective 60% tax rate between £100,000 and £125,140.

For a detailed breakdown of each band, see our income tax bands guide.

National Insurance Rates 2026/27

Employee Contributions (Class 1)

Earnings	NI Rate
Below £12,570 (Primary Threshold)	0%
£12,570–£50,270 (Basic Rate Band)	8%
Above £50,270	2%

Employer Contributions

Earnings	NI Rate
Below £5,000 (Secondary Threshold)	0%
Above £5,000	15%

Self-Employed (Class 4)

Profits	NI Rate
Below £12,570	0%
£12,570–£50,270	6%
Above £50,270	2%

For more on National Insurance, see our National Insurance guide.

Income Tax Calculation Examples

Example 1: £30,000 Salary

Component	Calculation	Amount
Gross salary		£30,000
Personal Allowance	£12,570 × 0%	£0
Basic Rate tax	£17,430 × 20%	£3,486
Total income tax		£3,486
Employee NI	£17,430 × 8%	£1,394
Total deductions		£4,880
Take-home pay		£25,120
Take-home (monthly)		£2,093
Effective tax rate		16.3%

Example 2: £50,000 Salary

Component	Calculation	Amount
Gross salary		£50,000
Personal Allowance	£12,570 × 0%	£0
Basic Rate tax	£37,430 × 20%	£7,486
Total income tax		£7,486
Employee NI	£37,430 × 8%	£2,994
Total deductions		£10,480
Take-home pay		£39,520
Take-home (monthly)		£3,293
Effective tax rate		21.0%

Example 3: £80,000 Salary

Component	Calculation	Amount
Gross salary		£80,000
Personal Allowance	£12,570 × 0%	£0
Basic Rate tax	£37,700 × 20%	£7,540
Higher Rate tax	£29,730 × 40%	£11,892
Total income tax		£19,432
Employee NI	£37,700 × 8% + £29,730 × 2%	£3,611
Total deductions		£23,043
Take-home pay		£56,957
Take-home (monthly)		£4,746
Effective tax rate		28.8%

Example 4: £125,000 Salary

Component	Calculation	Amount
Gross salary		£125,000
Personal Allowance	Reduced to £640 (tapered)	—
Basic Rate tax	£37,700 × 20%	£7,540
Higher Rate tax	£86,660 × 40%	£34,664
Total income tax		£42,204
Employee NI	£37,700 × 8% + £74,730 × 2%	£4,511
Total deductions		£46,715
Take-home pay		£78,285
Take-home (monthly)		£6,524
Effective tax rate		37.4%

The 60% Tax Trap (£100,000–£125,140)

When you earn between £100,000 and £125,140, your Personal Allowance is tapered away. This creates an effective marginal rate of 60%:

Component	Rate
Income tax (Higher Rate)	40%
Loss of Personal Allowance (extra tax)	20%
National Insurance	2%
Effective marginal rate	62%

How to Avoid the 60% Trap

Strategy	How It Helps
Pension contributions	Reduces taxable income below £100,000
Salary sacrifice	Lowers gross pay below threshold
Gift Aid charitable donations	Extends the basic rate band
Defer bonuses	If possible, spread income across tax years

Scottish Income Tax Rates 2026/27

Scotland has its own income tax bands:

Band	Taxable Income	Rate
Personal Allowance	£0–£12,570	0%
Starter Rate	£12,571–£14,876	19%
Basic Rate	£14,877–£26,561	20%
Intermediate Rate	£26,562–£43,662	21%
Higher Rate	£43,663–£75,000	42%
Advanced Rate	£75,001–£125,140	45%
Top Rate	Over £125,140	48%

Scottish taxpayers pay more at higher incomes but slightly less at lower incomes compared to the rest of the UK.

How to Reduce Your Tax Bill

Strategy	Details
Maximise pension contributions	Full tax relief; reduces taxable income
Use your ISA allowance	£20,000/year tax-free — see ISA guide
Marriage Allowance	Transfer £1,260 to spouse (saves up to £252)
Salary sacrifice	Childcare vouchers, cycle to work, pension
Claim work expenses	Flat rate allowances or actual costs
Tax-free savings interest	£1,000 (basic rate) or £500 (higher rate) PSA

Key Tax Dates 2026/27

Date	Deadline
6 April 2026	New tax year begins
31 July 2026	2nd payment on account for 2025/26
5 October 2026	Register for Self Assessment if newly self-employed
31 October 2026	Paper Self Assessment deadline
31 January 2027	Online Self Assessment deadline for 2025/26
31 January 2027	1st payment on account for 2026/27
5 April 2027	Tax year ends

Bottom Line

Understanding your income tax and National Insurance is essential for financial planning. Use the calculations above to estimate your take-home pay, and look into pension contributions and ISAs to reduce your overall tax burden.

For more on UK taxes, see our guides on National Insurance, capital gains tax, and dividend tax.

Phase 3 Pairing: Tax Calculator

Paired guide hub: UK Income Tax Hub

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

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