UK Income Tax Calculator 2026/27 — How Much Will You Pay?
Find out exactly how much income tax you will pay in 2026/27. Our UK income tax calculator covers all bands, personal allowance, National Insurance and take-home pay for employed and self-employed workers.
UK Income Tax Calculator 2026/27 — How Much Will You Pay?
Find out exactly how much income tax you will pay in 2026/27. Our UK income tax calculator covers all bands, personal allowance, National Insurance and take-home pay for employed and self-employed workers.
The UK income tax system is straightforward in principle but confusing in practice — especially once National Insurance, the personal allowance taper, student loan repayments and pension contributions are factored in. Most people have a rough idea of their take-home pay but don't know exactly how much they are paying in tax and NI each year.
Use our free 2026/27 income tax calculator below to get an instant, accurate breakdown of your income tax, National Insurance, and take-home pay. Then read on for a full explanation of the 2026/27 tax bands, rates and the legal ways to reduce your tax bill.
UK Income Tax Rates & Bands 2026/27
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. The personal allowance and tax bands remain frozen at 2021/22 levels under the government's four-year freeze policy — meaning more people are pulled into higher tax bands each year as wages rise, a process known as "fiscal drag."
| Tax band | Taxable income | Tax rate | Max tax in band |
|---|---|---|---|
| Personal allowance | £0 – £12,570 | 0% | £0 |
| Basic rate | £12,571 – £50,270 | 20% | £7,540 |
| Higher rate | £50,271 – £125,140 | 40% | £29,948 |
| Additional rate | Over £125,140 | 45% | No limit |
National Insurance Rates 2026/27
| NI category | Earnings threshold | Rate |
|---|---|---|
| Employee NI (Class 1) | £12,570 – £50,270/year | 8% |
| Employee NI (Class 1) | Over £50,270/year | 2% |
| Employer NI (Class 1) | Over £5,000/year | 15% |
| Self-employed (Class 4) | £12,570 – £50,270/year | 6% |
| Self-employed (Class 4) | Over £50,270/year | 2% |
| Self-employed (Class 2) | Profits over £12,570 | £3.45/week |
Quick Reference: Take-Home Pay by Salary 2026/27
| Gross salary | Income tax | Employee NI | Total deductions | Monthly take-home | Effective tax rate |
|---|---|---|---|---|---|
| £20,000 | £1,486 | £596 | £2,082 | £1,493 | 10.4% |
| £25,000 | £2,486 | £996 | £3,482 | £1,793 | 13.9% |
| £30,000 | £3,486 | £1,396 | £4,882 | £2,093 | 16.3% |
| £35,000 | £4,486 | £1,796 | £6,282 | £2,393 | 18.0% |
| £40,000 | £5,486 | £2,196 | £7,682 | £2,693 | 19.2% |
| £50,000 | £7,486 | £2,996 | £10,482 | £3,293 | 21.0% |
| £60,000 | £11,432 | £3,186 | £14,618 | £3,782 | 24.4% |
| £80,000 | £19,432 | £3,586 | £23,018 | £4,749 | 28.8% |
| £100,000 | £27,432 | £3,986 | £31,418 | £5,715 | 31.4% |
| £125,000 | £42,268 | £4,486 | £46,754 | £6,520 | 37.4% |
| £150,000 | £53,703 | £4,786 | £58,489 | £7,626 | 39.0% |
Student Loan Repayments 2026/27
Student loan repayments are collected alongside income tax and NI via PAYE for employees. The repayment thresholds and rates for each plan in 2026/27 are:
| Plan | Who it applies to | Repayment threshold | Rate above threshold |
|---|---|---|---|
| Plan 1 | Started university before September 2012 (England/Wales) or any time in Northern Ireland | £24,990/year | 9% |
| Plan 2 | Started university after September 2012 in England or Wales | £27,295/year | 9% |
| Plan 4 | Scottish students | £31,395/year | 9% |
| Plan 5 | Started university after August 2023 in England | £25,000/year | 9% |
| Postgraduate loan | Postgraduate Master's or Doctoral loans | £21,000/year | 6% |
How to Legally Reduce Your UK Income Tax
1. Maximise Pension Contributions
Pension contributions reduce your adjusted net income for tax purposes. For basic rate taxpayers, every £800 contributed to a pension becomes £1,000 (20% relief added automatically). For higher rate taxpayers, you receive 40% relief — meaning £600 in becomes £1,000. For those earning £100,000–£125,140, pension contributions recover the personal allowance at an effective rate of 60% relief.
2. Use Salary Sacrifice
Salary sacrifice arrangements let you exchange gross salary for non-cash benefits — most commonly pension contributions, electric vehicles, childcare vouchers, or cycle-to-work schemes. Because the sacrifice comes from gross salary before tax and NI, you save both income tax and National Insurance on the sacrificed amount. A £5,000 salary sacrifice saves a higher-rate taxpayer approximately £2,050 in tax and NI.
3. Maximise Your ISA Allowance
While ISA contributions don't reduce your current tax bill, they shelter future investment returns and interest from income tax and capital gains tax. The 2026/27 ISA allowance is £20,000. Using the full allowance each year with a Stocks & Shares ISA can save thousands in future tax on investment growth.
4. Claim the Marriage Allowance
If you are married or in a civil partnership and one partner earns under £12,570 (the personal allowance), the lower earner can transfer £1,260 of their unused personal allowance to their partner — saving up to £252 per year in income tax. Around 2 million eligible couples are not claiming this allowance.
5. Claim All Allowable Expenses (Self-Employed)
Self-employed workers can deduct allowable business expenses from their taxable profits. Common expenses include: home office costs (£6/week flat rate or actual costs), business mileage (45p/mile for the first 10,000 miles), professional subscriptions, accountancy fees, business equipment and software, and training directly related to the business.
6. Use the Trading and Property Allowances
The £1,000 trading allowance and £1,000 property allowance allow basic-rate taxpayers to earn up to £1,000 from self-employment or property income tax-free, without needing to register for Self Assessment. If you earn small amounts from selling online, renting a driveway, or occasional freelancing, these allowances can eliminate your tax liability entirely.
Income Tax FAQs
What is the income tax personal allowance in 2026/27?
The income tax personal allowance for 2026/27 is £12,570. This is the amount you can earn before paying any income tax. It has been frozen since 2021/22 and is set to remain frozen until at least 2027/28, pulling more people into higher tax bands each year as wages rise.
What are the UK income tax rates for 2026/27?
Personal allowance (0%) up to £12,570. Basic rate (20%) from £12,571 to £50,270. Higher rate (40%) from £50,271 to £125,140. Additional rate (45%) above £125,140.
What is the 60% tax trap?
The 60% tax trap affects earners between £100,000 and £125,140. In this range, your personal allowance is withdrawn at £1 for every £2 earned, creating an effective marginal rate of 60%. Pension contributions can reduce adjusted net income below £100,000 and recover the full personal allowance.
What is the National Insurance rate in 2026/27?
For employees: 8% on earnings between £12,570 and £50,270, and 2% above £50,270. For self-employed: Class 4 NI at 6% between £12,570 and £50,270, and 2% above. Employer NI is 15% on earnings above £5,000.
How do I pay less income tax legally?
The most effective legal ways to reduce income tax include: maximising pension contributions (reduces taxable income), salary sacrifice schemes, using the full £20,000 ISA allowance, claiming marriage allowance if eligible, and claiming all allowable expenses if self-employed.
Key Numbers for 2026/27
- Personal allowance: £12,570 (frozen until 2027/28)
- Basic rate (20%): £12,571 – £50,270
- Higher rate (40%): £50,271 – £125,140
- Additional rate (45%): above £125,140
- Employee NI: 8% up to £50,270, then 2%
- Annual pension allowance: £60,000
- ISA allowance: £20,000
- Capital gains annual exempt amount: £3,000
