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UK Tax Rates and Allowances 2026/27
Every key UK tax rate, threshold and allowance in one place: Income Tax, dividends, National Insurance, Corporation Tax, Capital Gains Tax, VAT, pensions and more. Kept up to date by our accountants, including changes already announced.
Showing rates already announced for 2027/28. Highlighted figures change from the current tax year. Further changes may be announced before then.
In short
Key UK tax rates and allowances for 2026/27
For the 2026/27 tax year, the Personal Allowance is £12,570. Income Tax is charged at 20%, 40% and 45%. Dividends above the £500 allowance are taxed at 10.75%, 35.75% or 39.35%. Corporation Tax is 19% to 25%, the VAT threshold is £90,000, and the Capital Gains Tax allowance is £3,000.
- Personal Allowance£12,570
- VAT threshold£90,000
- Corporation Tax19% to 25%
- Dividend Allowance£500
Tax rate changes already announced
Changes confirmed by the government that haven't started yet. This list updates itself as each change takes effect.
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Income Tax rates and bands 2026/27
Rates for England, Wales and Northern Ireland. Scotland sets its own Income Tax rates on earnings.
| Band | Taxable income | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,570 to £50,270 | 20% |
| Higher rate | £50,270 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
Your Personal Allowance falls by £1 for every £2 of income over £100,000, so it's nothing at £125,140.
Dividend tax rates 2026/27
For dividends from shares, including your own limited company.
| Rate | |
|---|---|
| Dividend Allowance | £500 tax-free |
| Basic rate taxpayers | 10.75% |
| Higher rate taxpayers | 35.75% |
| Additional rate taxpayers | 39.35% |
Savings interest tax rates and allowances 2026/27
Bank and building society interest, outside an ISA.
| Amount | |
|---|---|
| Personal Savings Allowance, basic rate | £1,000 |
| Personal Savings Allowance, higher rate | £500 |
| Starting rate for savings | Up to £5,000 at 0% |
| Basic rate on savings | 20% |
| Higher rate on savings | 40% |
| Additional rate on savings | 45% |
| ISA allowance | £20,000 a year |
Property income tax rates and allowances 2026/27
For landlords letting property in their own name.
| Amount | |
|---|---|
| Property allowance | £1,000 |
| Rent a Room Scheme | £7,500 a year |
| Basic rate on property income | 20% |
| Higher rate on property income | 40% |
| Additional rate on property income | 45% |
| Mortgage interest tax credit | 20% |
| Stamp Duty surcharge on additional homes | 5% |
National Insurance rates 2026/27
For employees, employers and the self-employed.
| Who | Rate |
|---|---|
| Employees, Class 1 | 8% on earnings £12,570 to £50,270, then 2% |
| Employers, Class 1 | 15% on earnings over £5,000 |
| Employment Allowance | Up to £10,500 a year |
| Self-employed, Class 4 | 6% on profits £12,570 to £50,270, then 2% |
| Self-employed, Class 2 | No longer payable. Voluntary contributions available below £7,105 |
Corporation Tax rates 2026/27
For UK limited companies.
| Taxable profits | Rate |
|---|---|
| Up to £50,000 | 19% small profits rate |
| £50,000 to £250,000 | Marginal relief between the two rates |
| Over £250,000 | 25% main rate |
| Annual Investment Allowance | Up to £1 million |
| Director's loan charge (s455) | 35.75% of the outstanding loan |
Capital Gains Tax rates and allowances 2026/27
For property, shares, crypto and business assets.
| Rate or amount | |
|---|---|
| Annual exempt amount | £3,000 |
| Basic rate taxpayers | 18% |
| Higher and additional rate taxpayers | 24% |
| Business Asset Disposal Relief | 18% |
| UK property reporting deadline | 60 days from completion |
VAT rates and thresholds 2026/27
For VAT-registered businesses.
| Rate or limit | |
|---|---|
| Standard rate | 20% |
| Reduced rate | 5% |
| Registration threshold | £90,000 |
| Deregistration threshold | £88,000 |
| Flat Rate Scheme turnover limit | £150,000 |
| Limited cost trader rate | 16.5% |
| Cash accounting turnover limit | £1.35 million |
Pension allowances and auto-enrolment 2026/27
For personal and workplace pensions.
| Amount | |
|---|---|
| Annual allowance | £60,000 |
| Tapered annual allowance | Starts at adjusted income over £260,000, minimum £10,000 |
| Auto-enrolment earnings trigger | £10,000 |
| Qualifying earnings band | £6,240 to £50,270 |
| Minimum contributions | 3% employer, 8% total |
Rates for employers 2026/27
Pay, benefits and expenses.
| Rate | |
|---|---|
| National Living Wage, age 21 and over | £12.71 an hour |
| Statutory Sick Pay | £123.25 a week |
| Electric car benefit in kind | 4% |
| Approved mileage, cars and vans | 45p a mile for the first 10,000 miles, then 25p |
| Approved mileage, motorcycles | 24p a mile |
| Approved mileage, bicycles | 20p a mile |
Other tax allowances 2026/27
Allowances that often apply alongside your main income.
| Amount | |
|---|---|
| Trading allowance | £1,000 |
| Marriage Allowance transfer | £1,260 |
| High Income Child Benefit Charge | From £60,000, full charge at £80,000 |
| Work expenses claim online (P87) up to | £2,500 |
| Making Tax Digital for Income Tax | Qualifying income over £50,000 |
| Inheritance Tax nil-rate band | £325,000, plus up to £175,000 residence nil-rate band |
| Inheritance Tax rate | 40% |
Companies House fees 2026/27
Official fees, passed on at cost.
| Filing | Fee |
|---|---|
| Incorporate a company online | £100 |
| Incorporate a community interest company | £115 |
| Confirmation statement | £50 |
| Voluntary strike-off | £13 |
Not sure how these tax rates affect you?
Our accountants work out what you'll pay and how to pay less, legally, for one fixed monthly fee.
Tax rates and allowances FAQs
What is the Personal Allowance for this tax year?
The Personal Allowance is £12,570. It's reduced by £1 for every £2 of income over £100,000.
What are the Income Tax rates?
In England, Wales and Northern Ireland, Income Tax is 20% on taxable income up to £50,270, 40% up to £125,140 and 45% above that.
What is the dividend tax rate?
After the £500 Dividend Allowance, dividends are taxed at 10.75% for basic rate taxpayers, 35.75% for higher rate and 39.35% for additional rate taxpayers.
What is the Corporation Tax rate?
19% on profits up to £50,000 and 25% on profits over £250,000, with marginal relief in between.
What is the VAT registration threshold?
You must register for VAT when taxable turnover goes over £90,000 in any rolling 12 months. You can deregister if it falls below £88,000.
What is the Capital Gains Tax allowance?
The annual exempt amount is £3,000. Gains above it are taxed at 18% or 24% depending on your income.
What National Insurance do self-employed people pay?
Class 4 National Insurance of 6% on profits between £12,570 and £50,270, and 2% above that. Class 2 is no longer payable.
When do tax rates change?
Most rates change on 6 April, the start of the tax year. Some, such as the National Living Wage, change on 1 April. Use the switch at the top of this page to see changes already announced for next year.
Sources: GOV.UK rates and allowances. Rates shown are for England, Wales and Northern Ireland unless stated. This page is general information, not personal tax advice.