UK Income Tax Calculator (2026/27)

How UK income tax works in 2026/27

Income tax in the UK is charged on your taxable income for the tax year (6 April 2026 to 5 April 2027). The exact bands depend on where you live and what kind of income you earn (employment, self-employment, savings, dividends).

England, Wales and Northern Ireland

• Personal allowance (0%) — first £12,570 of income (assuming standard 1257L code).
• Basic rate (20%) — next £37,700 of income, so income from £12,571 to £50,270.
• Higher rate (40%) — income from £50,271 to £125,140.
• Additional rate (45%) — income above £125,140.

Scotland

Scottish income tax bands and rates are set by the Scottish Parliament and are different from the rest of the UK. They apply if you are a Scottish taxpayer (broadly: your main home is in Scotland). Scottish tax codes start with an S prefix (e.g. S1257L). The bands published for 2026/27 (subject to in-year change) are:

• Starter rate (19%) — £12,571 to £16,537
• Basic rate (20%) — £16,538 to £29,526
• Intermediate rate (21%) — £29,527 to £43,662
• Higher rate (42%) — £43,663 to £75,000
• Advanced rate (45%) — £75,001 to £125,140
• Top rate (48%) — above £125,140

Personal allowance taper

If your adjusted net income is over £100,000, your personal allowance is reduced by £1 for every £2 above £100,000. The personal allowance disappears entirely once your income reaches £125,140. This creates an effective marginal rate of 60% on income between £100,000 and £125,140 — 40p of income tax on each marginal £1, plus another 20p of tax because the £1 of extra income causes 50p of personal allowance to be lost (and that 50p is itself then taxed at 40%). So 40p + 20p = 60p of tax on every extra £1 earned in this band.

Pension contributions and gift aid donations reduce your “adjusted net income” and can claw back the lost allowance. This is one of the most powerful planning levers available to higher earners.

K codes

A K code (e.g. K475) means you have negative personal allowance — typically because untaxed income (a company car benefit, untaxed interest, an underpayment from a prior year) exceeds your allowance. With a K code, the number after K (multiplied by 10) is added to your taxable pay in each pay period. The result is that you pay tax on more than you actually earn from that employer, which is HMRC's way of recovering the untaxed amount.

Marriage allowance

If one partner earns under the personal allowance and the other is a basic-rate taxpayer, the lower earner can transfer £1,260 of unused allowance to their partner — saving up to £252 per year. The donor (transferor) typically receives a tax code with an N suffix (e.g. 1131N), and the recipient typically receives a code with an M suffix (e.g. 1257M). See our Marriage Allowance Checker.