The UK tax year 2026/27 runs from 6 April 2026 to 5 April 2027. If you’re employed (PAYE), these updates affect how much you take home each month — mainly through Income Tax, National Insurance, and (for many people) student loan repayments.
Want a personalised breakdown in seconds? Use our calculators: UK take-home pay, Scotland take-home pay, Wales take-home pay, Northern Ireland take-home pay, and if you’re paid on public-sector scales: Teacher take-home pay or NHS take-home pay.
💡 Quick note
This article focuses on the main PAYE items most people care about. If you’re self-employed, have dividends, or complex pension/tax situations, the rules can differ.
1. Personal Allowance (2026/27)
For the 2026/27 tax year, the standard employee personal allowance remains: £12,570 per year (or £242 per week / £1,048 per month). This is the amount you can earn before you pay Income Tax (for most people on standard circumstances).
🔢 Pro tip
Your real take-home depends on your tax code, pension, and student loans. If you’re unsure, start with the main calculator: UK Take-Home Pay.
2. Income Tax Bands (England, Wales & Northern Ireland)
For England and Northern Ireland, and for Wales using the UK rates, the bands for 2026/27 are:
| Band | Rate | Taxable income (above Personal Allowance) |
|---|---|---|
| Basic rate | 20% | Up to £37,700 |
| Higher rate | 40% | £37,701 to £125,140 |
| Additional rate | 45% | Above £125,140 |
If you want to estimate your hourly pay after deductions, use: Salary to Hourly.
3. Scotland Income Tax Bands (2026/27)
Scotland uses different bands for non-savings and non-dividend income. The 2026/27 Scottish bands are:
| Band | Rate | Taxable income (above Personal Allowance) |
|---|---|---|
| Starter | 19% | Up to £3,967 |
| Basic | 20% | £3,968 to £16,956 |
| Intermediate | 21% | £16,957 to £31,092 |
| Higher | 42% | £31,093 to £62,430 |
| Advanced | 45% | £62,431 to £125,140 |
| Top | 48% | Above £125,140 |
⚠️ Scotland reminder
If you live in Scotland, don’t use an “England” take-home calculator — the difference can be meaningful. Use the correct one: Scotland Take-Home Pay.
4. National Insurance (Class 1) — Thresholds (2026/27)
National Insurance (NI) is deducted through PAYE for most employees. Key weekly thresholds for 2026/27 include:
| Threshold | Weekly | Monthly | Annual |
|---|---|---|---|
| Lower earnings limit (LEL) | £129 | £559 | £6,708 |
| Primary threshold (PT) | £242 | £1,048 | £12,570 |
| Secondary threshold (ST) | £96 | £417 | £5,000 |
| Upper earnings limit (UEL) | £967 | £4,189 | £50,270 |
5. National Insurance (Class 1) — Employee Rates (2026/27)
For most employees on the standard NI category letter A:
- 0% up to the Primary Threshold (PT)
- 8% from PT up to the Upper Earnings Limit (UEL)
- 2% above the UEL
📌 Quick check
Not sure which nation’s rules you’re under? Use the right calculator: England / Wales / Northern Ireland / Scotland.
6. National Minimum Wage (from 1 April 2026)
These minimum wage rates apply from 1 April 2026:
| Category | Hourly rate |
|---|---|
| Aged 21 and above (National Living Wage) | £12.71 |
| Aged 18 to 20 | £10.85 |
| Aged under 18 | £8.00 |
| Apprentice | £8.00 |
Want to convert annual pay into an hourly rate (or the other way around)? Try: Salary to Hourly.
7. Statutory Pay Rates (2026/27)
Statutory payment rates (used by employers) update from 5 April 2026. The key headline amounts for 2026/27 include:
- Statutory Maternity / Paternity / Adoption / Shared Parental / Parental Bereavement / Neonatal Care pay: £194.32 per week (or 90% of average weekly earnings if lower)
- Statutory Sick Pay (SSP): £123.25 per week (or 80% of average weekly earnings if lower)
💡 Why this matters to employees
Even if you don’t run payroll, these rates can affect your income if you take statutory leave or go off sick. If you want to see what your usual salary looks like after deductions, use Take-Home Pay.
8. Student Loan & Postgraduate Loan Thresholds (2026/27)
If you have a student loan, repayments can reduce your take-home pay significantly (especially around pay rises or overtime). For 2026/27:
| Loan type | Threshold (annual) | Repayment rate |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate loan | £21,000 | 6% |
🎯 Get an accurate take-home figure
If you have student loans, your “after tax” can be quite different. Use: Take-Home Pay calculator (and pick the right nation if needed: Scotland, Wales, NI).
9. Employer Figures (Good to know)
If you employ staff (or you’re just curious why payroll costs are higher than salaries), a few employer-side headlines for 2026/27 include:
- Employer (secondary) NI rate: 15% (most categories)
- Class 1A NI rate (benefits in kind): 15%
- Employment Allowance: up to £10,500 off eligible employer NI bills
- Apprenticeship Levy: 0.5% of pay bill above the allowance (allowance £15,000)
🎯 Key Takeaways
- The 2026/27 tax year runs from 6 April 2026 to 5 April 2027.
- Standard Personal Allowance remains £12,570 (most employees).
- England/NI (and Wales UK rates): 20% / 40% / 45% with the usual thresholds.
- Scotland uses different bands and rates — use the Scotland calculator.
- Employee NI (most people): 8% between PT and UEL, then 2% above UEL.
- National Living Wage (21+) from April 2026: £12.71/hour.
- SSP for 2026/27: £123.25/week. Many statutory family payments: £194.32/week.
10. Frequently Asked Questions
Which take-home pay calculator should I use?
Use the nation that matches where you live for Income Tax: England, Wales, Northern Ireland, Scotland.
Why does my payslip look different even on the same salary?
Your take-home can change due to tax code differences, pension contributions, student loans, overtime/bonuses, and whether you’re taxed under Scottish bands. The simplest way to check is to run your numbers in Take-Home Pay.
Do teachers and NHS staff have different deductions?
The tax rules are the same, but pension schemes and pay structures can make the final take-home different. Use: Teacher take-home or NHS take-home.
11. Final Thoughts
The headline tax rates don’t always tell you what you’ll actually keep — especially once National Insurance, pension contributions and student loans are included. If you’re planning a job move, pay rise, overtime, or budgeting for next year, run your numbers through the relevant calculator and you’ll get a realistic take-home estimate.