Net Pay LedgerHome › Rates 2026/27
Tax and National Insurance rates for 2026/27
Every threshold and rate the site uses for the tax year running from 6 April 2026 to 5 April 2027, as published by HM Revenue & Customs and the Scottish Government and checked on 2026-09-12. The personal allowance, the UK bands and the National Insurance thresholds are unchanged from 2025/26; Scotland lifted its basic and intermediate thresholds by 7.4%.
Employment income only. Savings and dividend rates, the marriage allowance, blind person's allowance and the high income child benefit charge are outside this site.
Personal allowance
| Standard personal allowance (tax code 1257L) | £12,570 |
| Taper starts at adjusted net income of | £100,000 |
| Reduction | £1 for every £2 above £100,000 |
| Allowance fully withdrawn at | £125,140 |
Income tax bands, England, Wales and Northern Ireland
| Band | Taxable income (after allowance) | Gross salary with full allowance | Rate |
|---|---|---|---|
| Basic rate | £0 to £37,700 | £12,571 to £50,270 | 20% |
| Higher rate | £37,700 to £125,140 | £50,271 to £125,140 | 40% |
| Additional rate | over £125,140 | over £125,140 | 45% |
Welsh rates of income tax are set by the Senedd at levels that leave the combined rates identical to England and Northern Ireland for 2026/27.
Income tax bands, Scotland
| Band | Taxable income (after allowance) | Gross salary with full allowance | Rate |
|---|---|---|---|
| Starter rate | £0 to £3,967 | £12,571 to £16,537 | 19% |
| Basic rate | £3,967 to £16,956 | £16,538 to £29,526 | 20% |
| Intermediate rate | £16,956 to £31,092 | £29,527 to £43,662 | 21% |
| Higher rate | £31,092 to £62,430 | £43,663 to £75,000 | 42% |
| Advanced rate | £62,430 to £125,140 | £75,001 to £125,140 | 45% |
| Top rate | over £125,140 | over £125,140 | 48% |
Scottish Rate Resolution S6M-20844 agreed 19 February 2026; Budget (Scotland) Bill passed 25 February 2026. Applies to earnings, pensions and property income of Scottish taxpayers; savings and dividends follow the UK rates.
National Insurance, class 1 (employees, category A)
| Threshold | Yearly | Monthly | Weekly |
|---|---|---|---|
| Lower earnings limit (counts for benefits, no NI due) | £6,708 | £559 | £129 |
| Primary threshold (employee NI starts) | £12,570 | £1,048 | £242 |
| Upper earnings limit (rate falls to 2%) | £50,270 | £4,189 | £967 |
| Secondary threshold (employer NI starts) | £5,000 | £417 | £96 |
| Rate | Employee | Employer |
|---|---|---|
| Between primary/secondary threshold and upper earnings limit | 8% | 15% |
| Above the upper earnings limit | 2% | 15% (no cap) |
Real payslips work out NI per pay period (monthly thresholds for monthly pay), so a bonus month can carry more NI than the annual figure suggests. Directors use the annual basis. Category A is the standard letter; apprentices under 25, employees under 21 and some others have different employer rates.
Student loan repayments
| Plan | Yearly threshold | Monthly | Rate above threshold |
|---|---|---|---|
| Plan 1 | £26,900 | £2,241 | 9% |
| Plan 2 | £29,385 | £2,448 | 9% |
| Plan 4 | £33,795 | £2,816 | 9% |
| Plan 5 | £25,000 | £2,083 | 9% |
| Postgraduate Loan | £21,000 | £1,750 | 6% |
Plan 1: pre-2012 English and Welsh loans and Northern Irish loans. Plan 2: English and Welsh loans from September 2012. Plan 4: Scottish loans. Plan 5: English loans from August 2023. Repayments are taken through PAYE on earnings above the threshold.
Sources
- GOV.UK: Income Tax rates and Personal Allowances (accessed 2026-09-12) ✓ checked
- GOV.UK: Rates and thresholds for employers 2026 to 2027 (accessed 2026-09-12) ✓ checked
- GOV.UK: Income Tax in Scotland (accessed 2026-09-12) ✓ checked
- Scottish Government: Scottish Rate Resolution 2026-27, motion and explanatory note (accessed 2026-09-12) ✓ checked
- GOV.UK: National Insurance rates and categories (accessed 2026-09-12) ✓ checked
- GOV.UK: Repaying your student loan, what you pay (accessed 2026-09-12) ✓ checked
- Budget 2025: Annex A, rates and allowances (accessed 2026-09-12) ✓ checked
Contains public sector information licensed under the Open Government Licence v3.0. How we calculate.
Net Pay Ledger applies the published HMRC rates and thresholds for tax year 2026/27 to a standard employee (tax code 1257L, National Insurance category A, no pension). Your payslip may differ. Not financial advice.