UK Income Tax,
made understandable.

01 · Start here

Your first £12,570 is usually tax-free

The standard Personal Allowance is the amount most employees can earn before Income Tax starts. For 2026/27, it is £12,570.

Once adjusted net income goes above £100,000, the allowance falls by £1 for every £2 of extra income. It reaches zero at £125,140. This is why earnings between £100,000 and £125,140 can face an unusually high effective marginal rate.

02 · The bands

England, Wales and Northern Ireland

Scotland uses different bands

Scottish Income Tax applies to wages, pensions and most other taxable income when you live in Scotland. Savings and dividend taxation remain aligned with the rest of the UK.

03 · Worked examples

What the bands mean in real salaries

These examples assume England, Wales or Northern Ireland, the standard allowance, no pension contribution and no student loan. Figures are annualised estimates.

04 · Your tax code

How HMRC tells payroll what to deduct

Your employer uses a tax code supplied by HMRC. The most common code is 1257L, reflecting the standard £12,570 allowance. A different code can account for another job, taxable benefits, tax owed from an earlier year or a changed allowance.

You can find your code on your payslip, in the HMRC app, in your online tax account or on a Tax Code Notice. If it looks wrong, check it with HMRC rather than guessing in the calculator.