Income Tax in plain English
Who this guide is for: Useful if you are an employee, comparing job offers, or checking why a payslip shows more than one Income Tax rate.
UK Income Tax is charged in bands. You do not pay one flat rate on everything you earn. Most people get a Personal Allowance — income you can receive before Income Tax applies — then pay higher rates on slices of income above that.
Wales and Northern Ireland follow the same bands as England for Income Tax. Scotland sets its own rates on non-savings, non-dividend income — see Scottish Income Tax Explained.
England, Wales and Northern Ireland bands for 2026/27
| Item | Amount / rate |
|---|---|
| Personal Allowance | £12,570.00 |
| Basic-rate band (20%) | Next £37,700.00 of taxable income |
| Higher-rate threshold (full PA) | About £50,270.00 total income |
| Higher rate (40%) | Up to £125,140.00 total income |
| Additional rate (45%) | Above £125,140.00 |
| Personal Allowance taper starts | £100,000.00 |
The basic-rate band width (£37,700.00) sits on top of your Personal Allowance. With the full allowance, higher-rate Income Tax typically starts around £50,270.00 of total income.
Scottish non-savings bands are not listed here — use the Scottish Income Tax Explained for that table.
How income is divided across bands
- Step 1Gross income
- Step 2Personal Allowance
- Step 3Basic-rate slice
- Step 4Higher-rate slice
- Step 5Additional-rate slice
Worked example
£50,000 salary — Income Tax by band
Tax year 2026/27 · England · tax code 1257L · no pension · no student loan · NI category A. Figures from the shared Income Tax engine.
| Gross salary | £50,000.00 |
|---|---|
| Personal Allowance used | £12,570.00 |
| Taxable income | £37,430.00 |
| Basic rate (20%) on £37,430.00 | £7,486.00 |
| Total Income Tax (key figure) | £7,486.00 |
Employee National Insurance is calculated separately and is not included in this Income Tax total.
Estimate how the tax bands apply to your salary Use the Income Tax Calculator
Personal Allowance taper above £100,000
Once adjusted net income exceeds £100,000.00, the Personal Allowance is reduced by £1 for every £2 of income above that point, until the allowance reaches zero (around £125,140.00 for someone with the standard taper).
In that taper range, each extra £1 of income can remove 50p of allowance as well as attracting higher-rate tax — so the effective marginal rate can be unusually high compared with the headline 40% band.
Tax codes can also change the allowance payroll uses — see Tax Codes Explained.
Common misunderstandings
- Gross salary equals taxable income. Pension contributions, Gift Aid and some other items can reduce taxable income.
- National Insurance uses the same bands. National Insurance has separate thresholds and rates — see National Insurance Explained.