UK Tax Thresholds & Allowances 2026/27: Complete Table
📌 Still frozen: the personal allowance and higher-rate threshold remain frozen for 2026/27 — unchanged since 2021 and set to stay put until April 2028, quietly pulling more income into tax each year.
- The personal allowance is £12,570 and the higher-rate threshold £50,270 — both frozen for 2026/27.
- Income tax stays at 20% / 40% / 45%; the personal allowance tapers away between £100,000 and £125,140.
- The dividend allowance is £500 and the Capital Gains exempt amount £3,000.
- The ISA allowance remains £20,000 and the VAT registration threshold £90,000.
- Frozen thresholds mean fiscal drag — pay rises push more of your income into higher tax.
- Want to see your take-home? Try our UK Salary Calculator.
Every UK tax bill starts with the same building blocks: allowances and thresholds. Knowing the current figures tells you what's tax-free, where each rate kicks in, and how much of a pay rise you actually keep. Here's the complete set for the 2026/27 tax year, all in one place and checked against the latest HMRC figures.
What is the personal allowance for 2026/27?
The personal allowance is £12,570 — the amount you can earn before paying any income tax. It's frozen at this level, where it has sat since 2021. Earn above £100,000 and it starts to disappear: you lose £1 of allowance for every £2 of income over £100,000, so it's gone entirely once you reach £125,140.
What are the income tax rates and bands?
These are the rates and bands for England, Wales and Northern Ireland (Scotland sets its own income tax bands):
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
What are the National Insurance rates?
National Insurance depends on whether you're employed, self-employed or an employer:
| Who | Rate | On |
|---|---|---|
| Employees (Class 1) | 8% then 2% | £12,570–£50,270, then above |
| Self-employed (Class 4) | 6% then 2% | £12,570–£50,270, then above |
| Self-employed (Class 2) | £3.65/week | Voluntary below £6,845 profit |
| Employers (Class 1) | 15% | Earnings above £5,000 |
Dividend, savings and capital gains allowances
The allowances for investment income have been trimmed sharply in recent years — here's where they stand:
| Allowance | 2026/27 | Rates above it |
|---|---|---|
| Dividend allowance | £500 | 10.75% / 35.75% / 39.35% |
| Capital Gains exempt amount | £3,000 | 18% / 24% |
| Personal savings allowance | £1,000 / £500 / £0 | Taxed at your income rate |
The personal savings allowance is £1,000 for basic-rate taxpayers, £500 for higher-rate, and nil for additional-rate. Business Asset Disposal Relief on qualifying gains is charged at 18% for 2026/27.
Other key allowances at a glance
| Allowance / threshold | 2026/27 |
|---|---|
| ISA allowance | £20,000 |
| Marriage Allowance | £1,260 transferable |
| Trading & property allowances | £1,000 each |
| VAT registration threshold | £90,000 |
| Corporation Tax | 19% to £50k profit, 25% from £250k (marginal relief between) |
Why are so many thresholds frozen?
Freezing thresholds instead of raising them with inflation is a quiet way to increase tax without changing headline rates — an effect known as fiscal drag. As wages rise but the bands stay put, more of your income crosses into the basic and higher-rate brackets, and more people are pulled into paying tax at all.
The personal allowance and higher-rate threshold have been frozen since 2021 and are due to remain so until April 2028. In practice, a pay rise that just keeps pace with inflation can still leave you paying a higher share in tax — which is exactly why checking your actual take-home matters.
Frequently asked questions
What is the tax-free personal allowance for 2026/27?
It's £12,570 — the amount you can earn before paying income tax. It's frozen at this level and reduces by £1 for every £2 you earn over £100,000, reaching zero at £125,140.
When do you start paying 40% tax?
The higher rate of 40% applies to taxable income above £50,270 for 2026/27, up to £125,140. Income over £125,140 is taxed at the additional rate of 45%.
Have UK tax thresholds changed for 2026/27?
The main income tax thresholds are frozen and unchanged. The personal allowance stays at £12,570 and the higher-rate threshold at £50,270, both held until April 2028.
What is the dividend allowance for 2026/27?
The dividend allowance is £500. Dividends above that are taxed at 10.75%, 35.75% or 39.35% depending on your income tax band.
We'll work out your exact tax position, make sure you're using every allowance you're entitled to, and file your return for a fixed fee. Get a quote or message us today.
Related: our UK Salary Calculator and Self Assessment tax return service. Official figures are on the gov.uk income tax rates pages.