2026–27 guide
UK Income Tax Brackets 2026-27
The income tax and National Insurance rates used in ClearPounds estimates for 2026/27, taken from HMRC’s published rates and thresholds. Always check your own tax code and circumstances.
England, Wales & Northern Ireland
| Taxable income | Rate |
|---|---|
| Personal allowance | 0% up to £12,570 |
| Basic rate | 20% £12,571–£50,270 |
| Higher rate | 40% £50,271–£125,140 |
| Additional rate | 45% above £125,140 |
Personal allowance tapers by £1 for every £2 of adjusted income above £100,000 and reaches zero at £125,140.
Scotland
| Income band | Rate |
|---|---|
| Starter · £12,571–£16,537 | 19% |
| Basic · £16,538–£29,526 | 20% |
| Intermediate · £29,527–£43,662 | 21% |
| Higher · £43,663–£75,000 | 42% |
| Advanced · £75,001–£125,140 | 45% |
| Top · above £125,140 | 48% |
The personal allowance is included in the thresholds shown. Student loan and NI assumptions remain UK-wide.
Employee National Insurance
| Annual earnings | Employee rate |
|---|---|
| Up to £12,570 | 0% |
| £12,571–£50,270 | 8% |
| Above £50,270 | 2% |
Worked take-home examples
Estimated annual take-home after income tax and employee NI, with no pension or student loan.
| Gross salary | England / Wales / NI | Scotland |
|---|---|---|
| £30,000 | £25,120 | £25,155 |
| £50,000 | £39,520 | £38,024 |
| £75,000 | £54,057 | £52,007 |
| £100,000 | £68,557 | £65,257 |
| £125,000 | £78,057 | £72,882 |
| £150,000 | £91,286 | £85,355 |
What is the £100,000 tax trap?
Under the assumptions above, the personal allowance is reduced by £1 for every £2 of income above £100,000. By £125,140 the allowance is fully withdrawn. A person earning £110,000 loses £5,000 of allowance, so £10,000 more income is exposed to tax than it would be if the full allowance remained. The income tax cost on that £10,000 is £4,000 at the 40% higher rate, in addition to tax on the extra income itself. This creates an effective marginal income-tax rate of 60% in the taper band; adding 2% employee NI yields an estimated 62% marginal deduction before any other factors.
The calculator flags salaries between £100,000 and £125,140. Pension contributions and adjusted net income can affect the personal allowance calculation, but individual circumstances are complex. Consider official guidance or professional advice before taking action.
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