Income Tax UK: Tax Codes, Allowances, PAYE, Scottish Rates and ReliefsUK 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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