UK income tax rates and bands
For the 2026/27 tax year the personal allowance is £12,570. In England, Wales and Northern Ireland income above it is taxed at the basic rate of 20% up to £50,270, the higher rate of 40% up to £125,140 and the additional rate of 45% above that. Scotland sets its own rates and thresholds for non-savings, non-dividend income, with six bands from a 19% starter rate to a 48% top rate. The main UK thresholds are frozen until April 2031, the freeze having been extended by three years at the Autumn Budget of 26 November 2025; Scottish thresholds are set each year in the Scottish Budget.
Key facts
| Personal allowance (2026/27) | £12,570, withdrawn by £1 for every £2 of income over £100,000 |
|---|---|
| Basic rate (rUK) | 20% on £12,571 to £50,270 |
| Higher rate (rUK) | 40% on £50,271 to £125,140 |
| Additional rate (rUK) | 45% above £125,140 |
| Scottish rates (2026/27) | 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced, 48% top |
| Dividend rates (2026/27) | 10.75%, 35.75% and 39.35% from 6 April 2026 (8.75%, 33.75% and 39.35% in 2025/26), with a £500 dividend allowance |
| Authority | HM Revenue & Customs (HMRC) |
Opens the assistant with United Kingdom already selected. Answers cite the law, guidance and cases they rest on.
The Scottish bands
For 2026/27 the Scottish starter rate of 19% applies from £12,571 to £16,537, the basic rate of 20% to £29,526, the intermediate rate of 21% to £43,662, the higher rate of 42% to £75,000, the advanced rate of 45% to £125,140 and the top rate of 48% above that. Scottish rates apply only to earnings, pensions and property income; savings and dividend income of Scottish taxpayers follows the UK rates and bands. Wales has the power to vary its rates but has so far matched England.
Savings and dividend income
Savings interest benefits from a personal savings allowance of £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and nothing at the additional rate, plus a £5,000 starting rate band at 0% for those with little other income. Dividends above the £500 allowance are taxed at 10.75%, 35.75% and 39.35% by band from 6 April 2026 (8.75% and 33.75% for the first two bands in 2025/26). From 6 April 2027 the rates on savings income rise to 22%, 42% and 47%.
Why the tax year matters
The figures above are for 2026/27. Ask the assistant for a named tax year and it answers from the Finance Act and Scottish Rate Resolution for that year rather than the latest one, which is the difference between a right and a wrong answer for a return, a settlement or a dispute.
Frequently asked questions
- What are the UK income tax bands for 2026/27?
- Personal allowance £12,570; basic rate 20% to £50,270; higher rate 40% to £125,140; additional rate 45% above that, outside Scotland.
- What are the Scottish income tax rates for 2026/27?
- Starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45% and top 48%, on non-savings, non-dividend income.
Primary sources
- GOV.UK — Income Tax rates and Personal Allowances
- GOV.UK — Income Tax in Scotland
- legislation.gov.uk
- HM Revenue & Customs (HMRC)
Related guides
Disclaimer: This page provides general tax information based on publicly available primary sources, reviewed on the date shown. Rules are conditional and change; the page may not reflect a change made after that date, and it is not a substitute for advice from a qualified tax professional on your specific situation.