Wondering how much income tax you owe in 2026/27? The UK system uses progressive tax bands — the rate you pay depends on how much of your income falls in each band. This guide explains exactly how income tax is calculated, with step-by-step examples — including what a £30,000 after tax salary looks like — so you can work it out yourself.
Want your answer in seconds? Use our free UK Salary Tax Calculator (England, Wales & Northern Ireland) — no signup required.
How UK Income Tax Works
The UK uses a progressive tax system. This means:
- • You do not pay the same rate on your entire income
- • Each portion of your income is taxed at the rate for its band
- • Moving into a higher band only affects the income above that band's threshold
Think of your income as being sliced into layers. Each layer sits in a different tax band and is taxed at that band's rate — and only that rate.
Step 1 — Know Your Personal Allowance
Before any tax is calculated, you subtract your Personal Allowance — the amount you can earn tax-free each year.
For 2026/27, the standard Personal Allowance is £12,570.
- • Earn £12,570 or less → pay no income tax
- • Earn more than £12,570 → only pay tax on the amount above £12,570
- • Earn over £100,000 → your Personal Allowance is gradually reduced
- • Earn £125,140 or more → your Personal Allowance is zero
💡 The Personal Allowance has been frozen at £12,570 since 2021/22, and the government has said it will stay there until 5 April 2031. As wages rise, more people are pulled into higher tax bands — this is known as fiscal drag.
Step 2 — The UK Income Tax Bands for 2026/27
Once you've subtracted your Personal Allowance, the rest of your income (your taxable income) is split across these bands. The table shows them as total income for someone with the standard allowance:
England, Wales and Northern Ireland
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Scotland — Different Rates Apply
If you live in Scotland, you pay Scottish Income Tax on your wages, pension and most other income. There are 6 bands for 2026/27:
| Band | Income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter rate | £12,571 – £16,537 | 19% |
| Basic rate | £16,538 – £29,526 | 20% |
| Intermediate rate | £29,527 – £43,662 | 21% |
| Higher rate | £43,663 – £75,000 | 42% |
| Advanced rate | £75,001 – £125,140 | 45% |
| Top rate | Over £125,140 | 48% |
On salary alone, a Scottish taxpayer pays up to £39.67 a year less income tax than the rest of the UK below £33,493, and more above it. Savings interest and dividends are taxed at the UK rates. Our calculator uses the England, Wales & NI rates.
Step 3 — Calculate Your Tax Band by Band
Here's the key point most people misunderstand: you never pay a higher rate on your full income. You only pay each rate on the portion of income that falls within that band.
Worked Example 1 — £28,000 salary (England)
| Step | Calculation | Tax |
|---|---|---|
| Personal Allowance | £12,570 → 0% | £0 |
| Basic rate | £28,000 − £12,570 = £15,430 → 20% | £3,086 |
| Total income tax | £3,086 | |
| Monthly tax | £3,086 ÷ 12 | £257.17/month |
Worked Example 2 — £55,000 salary (England)
| Step | Calculation | Tax |
|---|---|---|
| Personal Allowance | £12,570 → 0% | £0 |
| Basic rate | £50,270 − £12,570 = £37,700 → 20% | £7,540 |
| Higher rate | £55,000 − £50,270 = £4,730 → 40% | £1,892 |
| Total income tax | £9,432 | |
| Monthly tax | £9,432 ÷ 12 | £786/month |
Notice how only £4,730 is taxed at 40% — not the full £55,000. This is exactly how progressive taxation works.
Worked Example 3 — £80,000 salary (England)
| Step | Calculation | Tax |
|---|---|---|
| Personal Allowance | £12,570 → 0% | £0 |
| Basic rate | £50,270 − £12,570 = £37,700 → 20% | £7,540 |
| Higher rate | £80,000 − £50,270 = £29,730 → 40% | £11,892 |
| Total income tax | £19,432 | |
| Monthly tax | £19,432 ÷ 12 | £1,619.33/month |
Quick Reference: Income Tax at Common Salaries (England 2026/27)
| Gross Salary | Income Tax Paid | Effective Tax Rate |
|---|---|---|
| £15,000 | £486 | 3.2% |
| £20,000 | £1,486 | 7.4% |
| £25,000 | £2,486 | 9.9% |
| £30,000 | £3,486 | 11.6% |
| £40,000 | £5,486 | 13.7% |
| £50,000 | £7,486 | 15.0% |
| £60,000 | £11,432 | 19.1% |
| £80,000 | £19,432 | 24.3% |
| £100,000 | £27,432 | 27.4% |
🧮 For your exact figures including National Insurance and student loan repayments, use our free Salary Tax Calculator or browse take-home pay by salary.
The £100,000 Tax Trap — What Is It?
If your income is between £100,000 and £125,140, your Personal Allowance starts to disappear.
For every £2 you earn above £100,000, you lose £1 of your Personal Allowance. By £125,140, your Personal Allowance is zero.
This creates an effective marginal income tax rate of 60% in this range — for every extra £100 you earn between £100,000 and £125,140, you keep £40 after income tax.
- • Earn £100,000 → full £12,570 allowance
- • Earn £110,000 → Personal Allowance reduced to £7,570 → £2,000 more tax than with the full allowance
- • Earn £125,140 or more → Personal Allowance is £0; above this the additional rate of 45% applies
This is why many higher earners make extra pension contributions to bring their adjusted net income below £100,000 and keep their full Personal Allowance.
What Is Effective Tax Rate vs Marginal Tax Rate?
Marginal tax rate
The rate you pay on your next pound of income. If you earn £51,000, your marginal income tax rate is 40% (you're just into the higher rate band, which starts above £50,270).
Effective tax rate
The share of your total income paid in tax. On a £51,000 salary, your effective income tax rate is 15.4%, because most of your income is taxed at 20% or 0%.
This is why it's misleading to say "I'm a 40% taxpayer" — very few people pay 40% of their entire salary in income tax.
What About Tax Codes?
Your tax code tells your employer or pension provider how much tax-free income you get from them. 1257L is the code currently used for most people with one job or pension — it reflects the £12,570 Personal Allowance.
If you have untaxed income or company benefits (like medical insurance or a company car), HMRC takes them off your allowance and your code changes. You can check your tax code in your Personal Tax Account on GOV.UK.
| Tax Code | Meaning |
|---|---|
| 1257L | Standard — £12,570 Personal Allowance |
| BR | All income from this job or pension taxed at the basic rate (20%) |
| D0 | All income from this job or pension taxed at the higher rate (40%) |
| NT | No tax is paid on this income |
| K | You have untaxed income that is more than your Personal Allowance |
How to Reduce Your Income Tax Legally
Pension contributions
You get tax relief on pension contributions. In a relief-at-source scheme your provider claims 20%; if you pay a higher rate you claim the extra relief yourself on your Self Assessment tax return (or by contacting HMRC if you do not file one).
Gift Aid donations
If you pay the higher rate, you can claim back the difference between the tax you've paid on a Gift Aid donation and what the charity gets back.
Marriage Allowance
If you earn less than £12,570 and your spouse or civil partner pays the basic rate, you can transfer £1,260 of your Personal Allowance to them — cutting their tax by up to £252 a year.
Salary sacrifice
Giving up part of your salary in exchange for a benefit such as employer pension contributions can reduce the income you pay tax and National Insurance on. It cannot take your cash pay below the minimum wage.
ISA contributions
You can save tax-free with Individual Savings Accounts — up to £20,000 in 2026/27.
Calculate Your Income Tax in Seconds
Rather than working through the maths yourself, use our UK Salary Tax Calculator for a full 2026/27 breakdown for England, Wales and Northern Ireland.
Summary — UK Income Tax 2026/27 at a Glance
| 2026/27 | Amount / Rate |
|---|---|
| Personal Allowance | £12,570 |
| Basic rate (20%) | £12,571 – £50,270 |
| Higher rate (40%) | £50,271 – £125,140 |
| Additional rate (45%) | Over £125,140 |
| Allowance taper starts | £100,000 |
| Allowance fully withdrawn | £125,140 |
| Tax year | 6 April 2026 – 5 April 2027 |
Frequently Asked Questions
How much income tax do I pay on £30,000 in the UK?
On a £30,000 salary in England, Wales or Northern Ireland (2026/27), you pay £3,486 in income tax — 20% on £17,430 (the amount above your £12,570 Personal Allowance).
What are the UK income tax rates for 2026/27?
In England, Wales and Northern Ireland the basic rate is 20%, the higher rate is 40% and the additional rate is 45%. Scotland has six rates from 19% to 48%.
Do I pay tax on my full salary?
No. With the standard tax code the first £12,570 is tax-free, and each rate only applies to the income within that band.
What is the tax-free Personal Allowance for 2026/27?
The standard Personal Allowance is £12,570 for 2026/27. It has been frozen at this level since 2021/22 and the government has said it will stay there until 5 April 2031.
Last updated: 1 October 2026 · Sources: HMRC: Rates and thresholds for employers 2026 to 2027; GOV.UK: Income Tax in Scotland; GOV.UK: Income Tax rates and Personal Allowances; HM Treasury: thresholds maintained until 5 April 2031; GOV.UK: Marriage Allowance; GOV.UK: Individual Savings Accounts; HMRC: Salary sacrifice and the effects on PAYE; GOV.UK: What your tax code means; GOV.UK: Pension tax relief; GOV.UK: Gift Aid
For information only, not tax advice. Figures are estimates for a standard case; your own tax position may differ. Check with the official source or a qualified adviser before making decisions.
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