Income Tax UK: Tax Codes, Allowances, PAYE, Scottish Rates and Reliefs
UK Tax Brackets 2027/28 — Income Tax Bands, NI and Dividend Rates
Every UK tax bracket for 2027/28 in one place. Income tax bands, National Insurance rates, dividend tax rates, Capital Gains Tax, and the personal allowance — confirmed figures for the new tax year.
A complete reference for every UK tax bracket in 2027/28 — income tax, National Insurance, dividends, capital gains, and savings interest.
Last reviewed: May 2026. Figures reflect confirmed frozen thresholds. Any autumn 2026 Budget changes will be updated here when announced.
Income Tax Brackets — 2027/28
England, Wales and Northern Ireland
| Band |
Income range |
Rate |
| Personal allowance |
£0 – £12,570 |
0% |
| Basic rate |
£12,571 – £50,270 |
20% |
| Higher rate |
£50,271 – £125,140 |
40% |
| Additional rate |
£125,141+ |
45% |
Scotland (2026/27 rates — 2027/28 to be confirmed by Scottish Parliament)
| Band |
Income range |
Rate |
| Starter rate |
£12,571 – £15,397 |
19% |
| Basic rate |
£15,398 – £27,491 |
20% |
| Intermediate rate |
£27,492 – £43,662 |
21% |
| Higher rate |
£43,663 – £75,000 |
42% |
| Advanced rate |
£75,001 – £125,140 |
45% |
| Top rate |
£125,141+ |
48% |
National Insurance — 2027/28
Employee (Class 1 Primary) Contributions
| Earnings |
Rate |
| Up to £12,570 |
0% |
| £12,571 – £50,270 |
8% |
| Over £50,270 |
2% |
Employer (Class 1 Secondary) Contributions
| Earnings |
Rate |
| Up to £5,000 (secondary threshold) |
0% |
| Over £5,000 |
15% |
Self-Employed
- Class 4: 6% on profits £12,570–£50,270; 2% above £50,270
- Class 2: Voluntary (abolished from April 2024 for most; Class 4 entitles to contributory benefits)
Dividend Tax Rates — 2027/28
| Band |
Rate |
| Within personal allowance |
0% |
| Dividend allowance (first £500 of dividends) |
0% |
| Basic rate band |
8.75% |
| Higher rate band |
33.75% |
| Additional rate |
39.35% |
Capital Gains Tax — 2027/28
| Asset |
Basic rate |
Higher/additional rate |
| All assets (post Oct 2024 rates) |
18% |
24% |
| Annual exempt amount |
£3,000 |
|
Savings Interest
| Taxpayer |
Personal Savings Allowance |
| Basic rate |
£1,000 |
| Higher rate |
£500 |
| Additional rate |
£0 |
Starting rate for savings: 0% on up to £5,000 (reduced by non-savings income above personal allowance).
Inheritance Tax Thresholds — 2027/28
| Threshold |
Amount |
| Nil-rate band (individual) |
£325,000 |
| Residence Nil-Rate Band (individual) |
£175,000 |
| Potential threshold (individual, with RNRB) |
£500,000 |
| Potential threshold (couple, full transfer) |
£1,000,000 |
| IHT rate on excess |
40% |
| Charitable legacy rate |
36% |
Note: from April 2027, unused pension funds are included in the IHT estate for the first time.
ISA Allowances — 2027/28
| ISA type |
Annual subscription limit |
| Cash ISA |
£20,000 (shared across all ISA types) |
| Stocks and Shares ISA |
£20,000 (shared) |
| Lifetime ISA (LISA) |
£4,000 (within overall £20,000 limit) |
| Junior ISA (JISA) |
£9,000 (separate allowance, per child) |
The overall ISA allowance of £20,000 applies across all adult ISA types combined.
Effective Combined Tax Rates — 2027/28
For employees in England, Wales and Northern Ireland:
| Income |
Income tax |
Employee NI |
Combined effective rate |
| £20,000 |
~3.2% |
~3.0% |
~6.2% |
| £30,000 |
~9.9% |
~4.7% |
~14.6% |
| £40,000 |
~14.9% |
~6.0% |
~20.9% |
| £50,270 |
~19.0% |
~7.6% |
~26.6% |
| £60,000 |
~24.0% |
~5.4% |
~29.4% |
| £80,000 |
~30.3% |
~4.1% |
~34.4% |
Approximate figures — exact amounts depend on individual circumstances and tax codes.
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