The bands (2026–27)
| Band | England, Wales & NI | Scotland |
|---|---|---|
| Personal allowance | £12,570 (tapers over £100,000) | £12,570 (same) |
| First band | 20% to £37,700 taxable | 19% starter, 20% basic, 21% intermediate |
| Higher | 40% | 42% from £43,663 |
| Top | 45% over £125,140 | 45% advanced, 48% over £125,140 |
Worked example: the £110,000 taper
At £110,000 your personal allowance has already shrunk from £12,570 to £7,570 — £5,000 of income that used to be tax-free is now taxed at 40%. Total income tax is £33,432. Earn £2 more in this zone and you lose £1 of allowance: that's why financial advisers talk about a 60% trap (62% with National Insurance) between £100,000 and £125,140, and why pension contributions are so powerful there — they restore the allowance.
Frequently asked questions
What are the UK income tax bands for 2026–27?
England, Wales & NI: 20% on taxable income up to £37,700, 40% up to the additional-rate threshold, 45% above £125,140 of total income — after your £12,570 personal allowance. Scotland has six bands from 19% to 48%.
Why is the tax rate so high between £100,000 and £125,140?
Your personal allowance is withdrawn at £1 per £2 over £100,000. Each extra £100 earned also removes £50 of allowance, so you pay 40% on the £100 plus 40% on the £50 — a 60% effective rate, plus 2% National Insurance. Pension contributions can restore the allowance.
How much more tax do you pay in Scotland?
On £50,000, £1,496.05 a year more than in England (£8,982.05 vs £7,486), mainly due to the 21% intermediate band and 42% higher rate starting at £43,663. The gap widens at higher incomes.
What is my effective tax rate?
Total income tax divided by gross income. On £60,000 in England it's £11,432 — 19.1% — even though your marginal band is 40% for the top slice.
Rates checked against official sources on 1 November 2026: GOV.UK income tax rates and personal allowances and mygov.scot Scottish income tax. See how we calculate (UK) for the full method.