The 2027/28 income tax thresholds remain frozen at the same levels that have applied since April 2021. This page sets out the confirmed figures.
Last reviewed: May 2026. The 2027/28 rates shown below reflect the confirmed freeze on thresholds. Any changes announced in the autumn 2026 Budget will be reflected here when confirmed.
Income Tax Rates and Bands — 2027/28
England, Wales and Northern Ireland
| Band | Taxable income | Tax 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% |
Effective rates on total income (examples):
| Total income | Approximate income tax |
|---|---|
| £15,000 | £486 |
| £25,000 | £2,486 |
| £35,000 | £4,486 |
| £50,270 (top of basic rate) | £7,540 |
| £60,000 | £11,432 |
| £100,000 (PA taper starts) | £27,432 |
| £125,140 (PA fully withdrawn) | £42,475 |
| £150,000 | £53,703 |
Personal Allowance Taper
Income above £100,000 reduces the personal allowance by £1 for every £2 of excess:
| Total income | Effective personal allowance | Effective tax rate on income £100k–£125,140 |
|---|---|---|
| £100,000 | £12,570 | — |
| £110,000 | £7,570 | ~60% (loss of PA + 40% tax) |
| £125,140 | £0 | ~60% |
| £125,141+ | £0 | 45% |
Reducing income below £100,000 (via pension contributions, Gift Aid) restores the personal allowance and avoids the 60% effective rate trap.
What Changed from 2026/27 to 2027/28?
| 2026/27 | 2027/28 | Change | |
|---|---|---|---|
| Personal allowance | £12,570 | £12,570 | No change |
| Basic rate threshold | £50,270 | £50,270 | No change |
| Higher rate | 40% | 40% | No change |
| Additional rate threshold | £125,140 | £125,140 | No change |
| Additional rate | 45% | 45% | No change |
All thresholds are frozen under policy confirmed to continue until at least April 2028.
Fiscal Drag — Why More People Pay Higher Rate Tax
With thresholds frozen since 2021/22, rising wages mean more taxpayers cross into higher bands every year. This is known as fiscal drag — a stealth tax increase without any change in headline rates.
- In 2021/22, approximately 4.4 million people paid higher rate income tax
- By 2026/27, HMRC estimates over 6 million higher rate taxpayers
- A worker earning £50,000 today pays higher rate tax on £730 of income; by 2028 (when the freeze ends), the same salary could generate a larger higher rate liability if wages rise further while thresholds stay flat
How to Reduce Your Income Tax in 2027/28
| Method | Effect |
|---|---|
| Pension contributions | Reduce adjusted net income; restore personal allowance if near £100k |
| Salary sacrifice | Reduces taxable salary (employer schemes for pension, cycle-to-work, etc.) |
| Gift Aid donations | Extend basic rate band by grossed-up donation; higher rate taxpayers claim additional relief |
| Marriage Allowance | Transfer £1,257 personal allowance to basic rate partner; saves £251/year |
| Blind Person’s Allowance | Additional £3,070 allowance for qualifying individuals (2026/27 rate) |
| ISA contributions | Interest and investment returns within ISA are tax-free |
Scotland — Different Rates Apply
Scottish taxpayers pay Scottish Income Tax on non-savings, non-dividend income. The Scottish rates for 2027/28 will be set by the Scottish Parliament ahead of April 2027.