⚠️ UK High-Income Tax Traps & Cliff-Edges (£60k–£100k+)
Earning between £60,000 and £125,140 triggers statutory phaseouts and hard cliff-edges where effective tax rates exceed 60% or wipe out thousands in childcare subsidies.
£100k Tax Trap Calculator
Losing £1 Personal Allowance per £2 earned between £100k–£125k. Model pension salary sacrifice recovery.
Calculate 60% Trap →£100k Childcare Cliff
Earning £100,001 causes instant 100% loss of 30 funded hours and £2,000/child Tax-Free Childcare.
Calculate Childcare Loss →Bonus Over £100k Calculator
Check net take-home from bonuses, student loan deductions, and bonus sacrifice wealth multipliers.
Calculate Bonus Tax →Child Benefit Charge (HICBC)
Statutory 1% tax per £200 earned between £60,000 and £80,000 threshold. Calculate clawback.
Calculate HICBC Taper →⚡ Key Summary: UK Tax Bands & Rates 2026/27
For the 2026/27 tax year (from 6 April 2026), the UK Personal Allowance is £12,570 (0% tax-free). Income between £12,571 and £50,270 is taxed at the 20% Basic Rate; between £50,271 and £125,140 at the 40% Higher Rate; and over £125,140 at the 45% Additional Rate. Employee National Insurance is 8% between £12,570 and £50,270, and 2% above £50,270.
What are the UK Tax Rates and Thresholds for 2026/27?
The master comparison table below summarizes statutory rates and tax-free thresholds across all key UK direct and indirect taxes for 2026/27. While standard bands apply to default scenarios, individual liabilities vary based on reliefs, allowances, and personal tax codes.
| Tax Type | 2026/27 Statutory Rate | Tax-Free Threshold | Example Liability | Calculator |
|---|---|---|---|---|
|
Income Tax (rUK) England, Wales & NI |
20% Basic • 40% Higher 45% Additional (>£125,140) |
£12,570 Personal Allowance Tapered £1 per £2 over £100k |
£4,486 on £35,000 salary (12.8% effective) |
Calculate → |
|
Scottish Income Tax Scottish Resident Taxpayers |
6 Bands: 19% • 20% • 21% 42% (>£43,662) • 45% • 48% (>£125,140) |
£12,570 Personal Allowance Starter band to £14,876 |
£4,547 on £35,000 salary (+£61 vs England) |
Calculate → |
|
National Insurance (Class 1) Employees & Employers |
Employee: 8% (£12,570–£50,270), 2% (>£50,270) Employer: 15% above £5,000 |
£12,570 / yr (£242/wk) Employee £5,000 / yr (£96/wk) Employer |
£1,794 Employee NI on £35k £4,500 Employer NI on £35k |
Calculate → |
|
Capital Gains Tax (CGT) Shares, Property & Assets |
18% Basic Rate (All Assets) 24% Higher Rate (All Assets) |
£3,000 Annual Exemption Per individual taxpayer |
£1,620 on £12,000 gain (Basic) £2,160 on £12,000 gain (Higher) |
Calculate → |
|
Stamp Duty Land Tax (SDLT) England & Northern Ireland |
0% to £125k • 2% £125k–£250k 5% £250k–£925k • 10% • 12% |
£125,000 Standard £300,000 First-Time Buyers |
£7,500 on £350k home (Standard) £2,500 on £350k home (FTB) |
Calculate → |
|
Dividend Tax Company Directors & Investors |
8.75% Basic Rate 33.75% Higher • 39.35% Top |
£500 Dividend Allowance Zero tax on first £500 |
£831.25 tax on £10,000 dividends (at basic rate) |
Calculate → |
|
Inheritance Tax (IHT) Estates & Lifetime Gifts |
40% on estate above threshold 36% if 10%+ left to charity |
£325,000 Nil-Rate Band +£175,000 Residence Band |
£40,000 on £600,000 estate (using full £500k allowance) |
Calculate → |
|
Value Added Tax (VAT) Goods & Services |
20% Standard Rate 5% Reduced • 0% Zero-Rated |
£90,000 Turnover Threshold Deregistration: £88,000 |
£20.00 VAT on £100 net item (£120 gross price) |
Calculate → |
What are the 19 Statutory UK Taxes and Allowances in 2026/27?
Comprehensive statutory guide to every UK direct, indirect, wealth, household, and business tax governed by HMRC and HM Treasury for 2026/27.
Income Tax (PAYE)
Personal TaxStandard rates for England, Wales & NI. Personal Allowance remains frozen at £12,570. Higher rate starts at £50,271 and Additional rate at £125,140.
Scottish Income Tax
Devolved TaxApplies to Scottish residents on earned income. Starter (19%), Basic (20%), Intermediate (21%), Higher (42%), Advanced (45%), and Top rate (48%).
National Insurance (Class 1)
Employment TaxEmployees pay 8% on £12,570–£50,270 and 2% above. Employers pay 15% on earnings above the secondary threshold of £5,000.
Capital Gains Tax (CGT)
Wealth TaxUnified rates across residential property, shares, and other assets. Annual tax-free exemption is £3,000 per individual (£1,500 for trusts).
Corporation Tax
Business Tax19% Small Profits Rate on profits under £50,000; 25% Main Rate on profits over £250,000. Marginal Relief tapers profits between £50k and £250k.
Dividend Tax
Investment TaxTax on dividend income outside ISAs. First £500 is 100% tax-free under the Dividend Allowance, then taxed at basic, higher, or additional rate.
Value Added Tax (VAT)
Indirect TaxCompulsory registration threshold is £90,000 annual taxable turnover; deregistration threshold is £88,000. Zero-rate applies to most food and books.
Stamp Duty (SDLT)
Property TaxResidential purchase tax in England & NI. Standard 0% threshold is £125,000. First-Time Buyer relief applies up to £300,000 (max £500,000 value).
Inheritance Tax (IHT)
Estate Tax£325,000 Nil-Rate Band plus £175,000 Residence Nil-Rate Band (up to £1,000,000 for married couples). 7-year taper relief applies to lifetime gifts.
Child Benefit Clawback (HICBC)
Allowance Taper1% of Child Benefit is clawed back for every £200 earned over £60,000 adjusted net income. Fully eliminated once either parent reaches £80,000.
60% Marginal Tax Trap
Income TaperApplies between £100,000 and £125,140 where Personal Allowance is reduced by £1 for every £2 earned, compounding 40% income tax + 20% lost allowance.
Pension Allowances
Retirement ReliefContribute up to £60,000/yr with full tax relief (or 100% of UK earnings). MPAA is £10,000. Maximum tax-free lump sum is capped at £268,275.
ISA Allowances
Tax-Free SavingsSave up to £20,000 across Cash, Stocks & Shares, and Innovative Finance ISAs with 0% tax on gains/interest. Lifetime ISA limit is £4,000 (25% bonus).
Personal Savings Allowance
Interest ReliefEarn tax-free bank interest up to £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers receive £0.
Marriage Allowance
Family ReliefTransfer £1,260 of unused Personal Allowance to a basic-rate spouse or civil partner, reducing their annual tax bill by up to £252.
Student Loan Deductions
Payroll DeductionThresholds: Plan 1 (£24,990), Plan 2 (£28,470), Plan 4 Scotland (£31,395), Plan 5 (£25,000), Postgraduate (£21,000). Deducted directly via PAYE.
Council Tax Bands
Local TaxationLocal authority taxation based on property valuations. Single Person Discount gives 25% off. Full-time students and certain carers are 100% exempt.
Vehicle Tax (VED / Road Tax)
Motoring TaxFirst-year rate is based on CO2 emissions. Standard rate is £195/yr (including EVs from 2025). Cars with list price over £40,000 pay £410 expensive car supplement for 5 years.
Benefits in Kind (BIK / P11D)
Employment BenefitTaxable perks provided by employers. Fully electric cars benefit from a low 2%–3% BIK rate. Taxed at the employee's marginal income tax rate (20%/40%/45%).
All figures, thresholds, and calculation engines across UKTaxRates.co.uk are cross-referenced directly against official UK legislation: HMRC Rates & Allowances (gov.uk) and Scottish Government Tax Provisions. Verified for the current 2026/27 financial year.
How to Calculate Your Take-Home Pay and UK Tax Liabilities
Select any dedicated calculator below for detailed breakdowns with tax codes, pension reliefs, student loan repayments, and amortisation schedules.
Frequently Asked Questions About UK Tax Rates (2026/27)
Direct answers to the most common UK tax questions for 2026/27.
For 2026/27 in England, Wales and Northern Ireland, the income tax bands are: Personal Allowance (0%) on income up to £12,570, Basic Rate (20%) on income from £12,571 to £50,270, Higher Rate (40%) on income from £50,271 to £125,140, and Additional Rate (45%) on income above £125,140.
Following the Autumn Budget changes, Capital Gains Tax rates are 18% for basic rate taxpayers and 24% for higher and additional rate taxpayers across all chargeable assets, including residential property, listed shares, and unlisted business assets. The annual tax-free exempt amount is £3,000.
Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. Employers pay Secondary Class 1 NI at 15% on employee earnings above the £5,000 secondary threshold.
The 60% marginal tax trap occurs between £100,000 and £125,140. In this bracket, your £12,570 Personal Allowance is withdrawn by £1 for every £2 earned over £100k. Combining 40% income tax with 20% effective tax from lost allowance creates a 60% marginal deduction. Making pension contributions or salary sacrifice brings your adjusted net income under £100,000 and recovers your full allowance.