UK tax rates 2026/27
Last reviewed 24 September 2026 against HMRC and GOV.UK by Spencer Elbert, ICB Certified, Xero Certified Advisor, CIMA Dip MA
The headline rates and thresholds for the tax year 6 April 2026 to 5 April 2027, in plain English. England, Wales and Northern Ireland; Scotland sets its own Income Tax bands.
Every figure on this page is taken from HMRC guidance on GOV.UK (linked at the bottom) and was checked against it in September 2026. Rates change at Budgets and your position depends on your circumstances, so treat this as a reference, not advice. If in doubt, ask us. Note: dividend rates rose by 2 percentage points from 6 April 2026, so older guides showing 8.75% and 33.75% are out of date.
Income Tax
- Personal Allowance
- £12,570 tax-free. Reduced by £1 for every £2 of income above £100,000, gone entirely at £125,140.
- Basic rate: 20%
- On taxable income from £12,571 to £50,270.
- Higher rate: 40%
- On taxable income from £50,271 to £125,140.
- Additional rate: 45%
- On taxable income above £125,140.
National Insurance
- Employees: 8%
- On earnings between £12,570 and £50,270, then 2% above that.
- Self-employed: 6%
- Class 4 on profits between £12,570 and £50,270, then 2% above. Class 2 is no longer payable for most; voluntary contributions can protect your State Pension record.
- Employers: 15%
- On each employee's earnings above £5,000 a year. The Employment Allowance can reduce the overall bill for eligible employers.
Dividends
- Allowance: £500
- The first £500 of dividends each year is tax-free.
- Basic rate: 10.75%
- Up 2 percentage points from April 2026. Applies to dividends within the basic rate band.
- Higher rate: 35.75%
- Also up 2 percentage points from April 2026. If you pay yourself in dividends, your salary and dividend mix is worth reviewing this year.
- Additional rate: 39.35%
- Unchanged, on dividends above £125,140 of income.
Corporation Tax
- Small profits rate: 19%
- For companies with profits up to £50,000.
- Main rate: 25%
- For profits above £250,000. Between £50,000 and £250,000, marginal relief means profits are taxed at 19% on the first £50,000 and an effective 26.5% on each pound above it.
VAT
- Standard rate: 20%
- Reduced rate 5% on qualifying goods and services.
- Registration: £90,000
- You must register once taxable turnover passes £90,000 in any rolling 12 months. Deregistration threshold £88,000. Do I need to register for VAT?
Capital Gains Tax
- Annual exemption: £3,000
- Gains above this are taxed at 18% within the basic rate band and 24% above it for most assets.
Sources: HMRC (GOV.UK)
- Income Tax
- gov.uk/income-tax-rates
- National Insurance
- gov.uk/rates-and-thresholds-for-employers and gov.uk/self-employed-national-insurance-rates
- Dividends
- gov.uk/tax-on-dividends
- Corporation Tax
- gov.uk/corporation-tax-rates
- Capital Gains Tax
- gov.uk/capital-gains-tax/rates