UK Income Tax Bands
The UK has a 'progressive' tax system, which means the more you earn, the higher the rate of tax you pay. This guide breaks down the different tax bands and how your Personal Allowance works.The Personal Allowance
- Standard Allowance: £12,570 is tax-free. This bracket is frozen until at least April 2028.
- The "60% Tax Trap": If your Adjusted Net Income passes £100,000, you lose £1 of this allowance for every £2 earned. Between £100,000 and £125,140, this double-hit creates a brutal 60% effective tax rate.
Income Tax Bands: England, Wales, and Northern Ireland
| Tax Band | Taxable Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic Rate | £12,571 to £50,270 | 20% |
| Higher Rate | £50,271 to £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Quick Calculation Example: On £60,000 of total earnings, your tax is split incrementally: the first £12,570 is tax-free, the next £37,700 is taxed at 20% (£7,540), and only the remaining £9,730 is taxed at 40% (£3,892). Total due: £11,432.
What If I Live in Scotland?
Scottish taxpayers pay different rates on salary, self-employment, and property income. For 2026/27, lower-tier bands have been stretched by 7.4% to help middle earners, while upper thresholds remain frozen:
| Scottish Tax Band | Taxable Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Starter Rate | £12,571 to £16,537 | 19% |
| Basic Rate | £16,538 to £29,526 | 20% |
| Intermediate Rate | £29,527 to £43,662 | 21% |
| Higher Rate | £43,663 to £75,000 | 42% |
| Advanced Rate | £75,001 to £125,140 | 45% |
| Top Rate | Over £125,140 | 48% |
Key Takeaway
Your personal allowance completely vanishes once your income reaches £125,140, regardless of where you live in the UK.
Taxd can help: If you are a higher earner tracking close to the £100,000 barrier, strategic moves like personal pension contributions or Gift Aid donations will lower your Adjusted Net Income, rescue your standard allowance, and pull you cleanly out of the 60% tax trap.