Income tax
Rates, bands and personal allowances for England, Wales, Scotland and Northern Ireland.
2026/27
Income tax — England, Wales, NI (non-savings/non-dividend)
| Band | Rate | Notes |
|---|---|---|
| Up to £37,700 | 20% | Basic rate |
| £37,701 – £125,140 | 40% | Higher rate |
| Over £125,140 | 45% | Additional rate |
- Personal allowance£12,570 Tapered by £1 for every £2 over £100,000
- Marriage allowance£1,260
- Blind person's allowance£3,250
- Savings allowance — basic rate£1,000
- Savings allowance — higher rate£500
- Dividend allowance£500
Income tax — Scotland (non-savings/non-dividend)
| Band | Rate | Notes |
|---|---|---|
| Up to £3,967 | 19% | Starter |
| £3,968 – £16,956 | 20% | Basic |
| £16,957 – £31,092 | 21% | Intermediate |
| £31,093 – £62,430 | 42% | Higher |
| £62,431 – £125,140 | 45% | Advanced |
| Over £125,140 | 48% | Top |
Scottish rates apply to non-savings, non-dividend income only.
2025/26
Income tax — England, Wales, NI
| Band | Rate | Notes |
|---|---|---|
| Up to £37,700 | 20% | Basic rate |
| £37,701 – £125,140 | 40% | Higher rate |
| Over £125,140 | 45% | Additional rate |
- Personal allowance£12,570
- Dividend allowance£500
Income tax — England & Wales
| Band | Rate | Notes |
|---|---|---|
| Up to £37,700 | 20% | Basic rate |
| £37,701 – £125,140 | 40% | Higher rate |
| Over £125,140 | 45% | Additional rate |
- Personal allowance£12,570 Tapered above £100k
Understanding UK income tax rates
Income tax is charged on most income — employment, self-employment, pensions, rental profits and savings above the allowances. Everyone has a tax-free personal allowance, then income is taxed in bands at the basic, higher and additional rates. The tables above show the current-year rates and thresholds for England, Wales and Northern Ireland; Scotland sets its own bands.
Careful use of allowances, pension contributions and the timing of income can keep you in a lower band. Our personal tax service handles this for individuals, directors and landlords.
Frequently asked
What is the personal allowance?+
It is the amount of income you can receive tax-free each year. It tapers away once income exceeds £100,000, so effective rates can be higher in that band.
Do dividends and savings have different rates?+
Yes — dividends and savings income have their own allowances and rates. See our dividend tax page and speak to us for planning.