Taxable income bands and tax rates
(England, Wales, and Northern Ireland)
| Basic rate band | £0 to £37,700 |
| Higher rate band | £37,701 to £125,140 |
| Additional rate band | £125,141 and over |
| Basic rate | 20% |
| Higher rate | 40% |
| Additional rate | 45% |
| Dividend ordinary rate | 10.75% |
| Dividend upper rate | 35.75% |
| Dividend additional rate | 39.35% |
| Starting rate for savings | 0% |
| Starting rate limit | £5,000 |
| Note: Scottish income tax rates apply to the non-savings non-dividend income of Scottish taxpayers.
Income tax allowances 2026/27 |
|
| Personal allowance | £12,570 |
| Income limit for personal allowance | £100,000 |
| Marriage allowance | £1,260 |
| Married couple’s allowance – born before 6 April 1935 | £11,700 |
| Minimum amount of married couple’s allowance | £4,530 |
| Income limit for married couple’s allowance | £39,200 |
| Blind person’s allowance | £3,250 |
| Dividend allowance | £500 |
| Personal savings allowance – basic rate taxpayers | £1,000 |
| Personal savings allowance – higher rate taxpayers | £500 |
| National Insurance bands and thresholds for 2026/27
Class 1 |
|
| Lower earnings limit (LEL) | £129 per week
£559 per month £6,708 per year |
| Primary threshold (PT) | £242 per week
£1,048 per month £12,570 per year |
| Secondary threshold (ST) | £175 per week
£758 per month £9,100 per year |
| Upper earnings limit (UEL) | £967 per week
£4,189 per month £50,270 per year |
| Upper secondary threshold for under 21’s | £967 per week
£4,189 per month £50,270 per year |
| Apprentice upper secondary threshold (AUST) | £967 per week
£4,189 per month £50,270 per year |
| Veterans upper secondary threshold | £967 per week
£4,189 per month £50,270 per year |
| Special tax sites (Freeports and Investment Zones) upper secondary threshold | £481 per week
£2,083 per month £25,000 per year |
| Employee’s primary rate (payable on earnings between the PT and UEL) | 8% |
| Employee’s additional rate (payable on earnings above the UEL) | 2% |
| Secondary rate (payable on earnings above the relevant secondary threshold) | 15% |
| Reduced rate for certain married women (on earnings between the PT and UEL) | 1.85% |
| Employment allowance | £10,500 |
| Class 1A | |
| Class 1A rate (employer only) | 15% |
| Class 1B | |
| Class 1B rate (employer only) | 15% |
| Class 2 | |
| Class 2 voluntary rate (employer only) | £3.65 per week |
| Small profits threshold (SPT) | £7,105 |
| Class 3 | |
| Class 3 rate | £18.40 per week |
| Class 4 | |
| Lower profits limit (LPL) | £12,570 per year |
| Upper profits limit (UPL) | £50,270 per year |
| Main Class 4 rate (on profits between LPL and UPL) | 6% |
| Additional Class 4 rate (on profits above LPL) | 2% |
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