You start paying 40% Income Tax on earnings above £50,270 in England, Wales and Northern Ireland in the 2026/27 tax year. It only applies to the part of your salary above that line, never to the whole amount. In Scotland the equivalent 42% “higher rate” starts lower, at £43,663.
The 2026/27 bands
| Band | England, Wales & NI | Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
| Band | Scotland | Rate |
|---|---|---|
| Starter | £12,571 to £16,537 | 19% |
| Basic | £16,538 to £29,526 | 20% |
| Intermediate | £29,527 to £43,662 | 21% |
| Higher | £43,663 to £75,000 | 42% |
| Advanced | £75,001 to £125,140 | 45% |
| Top | Over £125,140 | 48% |
“If I go into the higher band, will I take home less?”
No. That’s a myth. Only the pounds above £50,270 are taxed at 40%. National Insurance also drops from 8% to 2% at the same point, so the real marginal rate goes from 28% to 42%, not from 20% to 40% on everything.
| Salary | Income Tax | Take-home | Tax + NI on next £1 |
|---|---|---|---|
| £45,000 | £6,486 | £35,920 | 28.0% |
| £50,270 | £7,540 | £39,714 | 42.0% |
| £55,000 | £9,432 | £42,457 | 42.0% |
| £60,000 | £11,432 | £45,357 | 42.0% |
| £70,000 | £15,432 | £51,157 | 42.0% |
Keeping under the line
If a rise takes you just over £50,270, salary-sacrificing the excess into your pension keeps it out of the higher-rate band. That puts 100% of it in your pension instead of 58% in your pocket. Try it in the calculator by adding a pension percentage:
Frequently asked questions
What is the higher rate tax threshold for 2026/27?
£50,270 in England, Wales and Northern Ireland (taxable income above £37,700 after the £12,570 allowance). In Scotland the 42% rate starts at £43,663.
Is the threshold frozen?
Yes. The Personal Allowance and higher-rate threshold are frozen at £12,570 and £50,270. As wages rise, more people are pulled into higher rates (“fiscal drag”).
Does National Insurance go up in the higher band?
No, it goes down: employee NI falls from 8% to 2% on earnings above £50,270.
