UK Income Tax Rates for 2026-27 and Historical Tax Bands for 2011-15
Income Tax in the United Kingdom is charged at progressive rates. This guide explains the current 2026-27 bands, personal allowances, the different Scottish rates, taxation of savings and dividends, and the historical rates for 2011-12 to 2014-15.
UK Income Tax rates for 2026-27
The UK tax year runs from 6 April to 5 April. For 6 April 2026 to 5 April 2027, the standard Personal Allowance is £12,570. The following bands apply to most non-savings income in England, Wales and Northern Ireland. The rates are marginal: each rate applies only to the portion of income within its band.
| Band | Annual income with standard allowance | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic | £12,571 to £50,270 | 20% |
| Higher | £50,271 to £125,140 | 40% |
| Additional | Above £125,140 | 45% |
Personal Allowance taper: The allowance is reduced by £1 for every £2 of adjusted net income above £100,000 and is fully withdrawn at £125,140. The table assumes entitlement to the full standard allowance, so higher-income calculations must take this taper into account.
Other reliefs may apply, including Marriage Allowance, Blind Person's Allowance and certain pension or charitable giving reliefs. See the HMRC Income Tax rates and allowances guide.
Scottish Income Tax rates for 2026-27
Scottish residents have separate rates on most employment, pension, property and self-employment income. The UK-wide rules continue to apply to savings interest and dividends.
| Band | Annual income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Above £125,140 | 48% |
Refer to the official Scottish Income Tax guidance for residency and rate rules. Welsh Income Tax guidance explains the rates applicable in Wales.
Savings income and dividend tax in 2026-27
Savings income
A 0% starting rate may apply to up to £5,000 of savings income, depending on the taxpayer's other income. The Personal Savings Allowance is generally £1,000 for basic-rate taxpayers, £500 for higher-rate taxpayers and nil for additional-rate taxpayers. The starting-rate band is reduced by non-savings income above the Personal Allowance.
Dividends
The dividend allowance for 2026-27 is £500. Dividend income above the allowance is generally taxed at 10.75% (ordinary rate), 35.75% (upper rate) or 39.35% (additional rate), according to the applicable band. The dividend allowance is a 0% band, not a deduction that extends the tax bands.
See the official 2026-27 rates and allowances annex.
Historical UK Income Tax rates: 2011-12 to 2014-15
The original article covered four historical tax years. The following figures remain useful for reviewing older assessments and tax records. These are historical rates, not current rates. The bands below are amounts of taxable income after deducting applicable allowances.
| Tax year | Basic rate: 20% | Higher rate: 40% | Additional rate | Starting savings band: 10% |
|---|---|---|---|---|
| 2014-15 | Up to £31,865 | £31,866 to £150,000 | 45% above £150,000 | Up to £2,880 |
| 2013-14 | Up to £32,010 | £32,011 to £150,000 | 45% above £150,000 | Up to £2,790 |
| 2012-13 | Up to £34,370 | £34,371 to £150,000 | 50% above £150,000 | Up to £2,710 |
| 2011-12 | Up to £35,000 | £35,001 to £150,000 | 50% above £150,000 | Up to £2,560 |
Historical savings note: The 10% starting rate applied only to qualifying savings income. Where non-savings taxable income exhausted the starting-rate band, the preferential savings rate was unavailable. Employment earnings, self-employment profits, pensions, property income and taxable benefits were generally treated as non-savings income.
Historical dividend rates: The ordinary dividend rate was 10% and the upper rate 32.5% in these years. The dividend additional rate was 42.5% for 2011-12 and 2012-13, falling to 37.5% for 2013-14 and 2014-15. The historical dividend tax credit system differs from the current dividend allowance regime.
Historical tax computations also depend on the applicable personal allowance, age-related allowances and other reliefs in the relevant year. Check HMRC's rates and allowances archive when preparing an amended or historical calculation.
How UK Income Tax is calculated
- Identify tax residence and the correct tax year, including whether Scottish rates apply.
- Determine total taxable employment, self-employment, pension, property, savings and dividend income.
- Deduct allowable reliefs and determine the applicable Personal Allowance, including any taper.
- Apply the relevant marginal bands to non-savings income, then savings and dividends in the statutory ordering.
- Account for tax deducted at source, eligible credits and any National Insurance liability separately.
Illustration: A taxpayer in England with £40,000 of employment income, a full £12,570 Personal Allowance and no other adjustments has £27,430 taxable income. At 20%, Income Tax is £5,486 before considering any other reliefs or tax already paid.
Official UK tax information
For current rates, historic schedules and statutory guidance, consult HMRC's current Income Tax guide, HMRC rates and allowances publications, and the Income Tax Act 2007, which provides core statutory provisions on Income Tax, including the charge to tax, rates and allowances. The Income Tax (Trading and Other Income) Act 2005 addresses major categories of taxable income.
This article provides general information as at 9 October 2026. Tax treatment depends on personal circumstances, residence, income type and legislation applicable to the relevant year.