Income tax rates 2026/27
England, Wales and Northern Ireland
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scotland
| Band | Income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
These income ranges assume the standard personal allowance. The allowance shrinks by £1 for every £2 earned over £100,000, which creates an effective 60% tax rate (over 60% in Scotland) on income between £100,000 and £125,140. Paying more into a pension is a common way to bring income back under £100,000.
National Insurance and student loans 2026/27
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year, and 2% above that. The same thresholds apply in Scotland.
| Student loan | You repay on earnings over | 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% |
If you have a postgraduate loan as well as an undergraduate plan, you repay both at the same time.
Pension types explained
- Net pay: your employer takes the contribution before calculating income tax, so you get tax relief straight away. NI is still charged on the full salary.
- Salary sacrifice: you give up part of your salary and your employer pays it into your pension instead. You save income tax and National Insurance, and student loan repayments may fall too.
- Relief at source: the contribution comes out of your pay after tax, and the pension provider adds 20% basic-rate relief. Higher and additional rate taxpayers can claim the extra relief through Self Assessment, which isn't included here.
Sources: GOV.UK rates and thresholds for employers 2026 to 2027, gov.scot Scottish income tax 2026 to 2027, GOV.UK repaying your student loan. Last checked 26 October 2026.
FAQ
Why is my payslip slightly different?
Your employer works out tax, NI and student loan for each pay period, and your tax code may not be the standard 1257L (for example if you have benefits in kind or owe tax from a previous year). Bonuses and overtime can also push one month's deductions up.
Does this include employer National Insurance?
No. Employer NI is paid by your employer on top of your salary and doesn't come out of your pay.