UK tax rates for 2026/27
Every rate and threshold the Modulas calculator uses for 2026/27, with last year's beside it and the GOV.UK page for each.
Rates checked against GOV.UK on 8 October 2026.
Income tax
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Allowance tapers away, £1 for every £2 | £100,000 to £125,140 | £100,000 to £125,140 |
| Basic rate, up to £50,270 | 20% | 20% |
| Higher rate, up to £125,140 | 40% | 40% |
| Additional rate, above £125,140 | 45% | 45% |
From GOV.UK: Income tax rates and bands
National Insurance
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Employee, from £12,570 to £50,270 | 8% | 8% |
| Employee, above £50,270 | 2% | 2% |
| Employer, above £5,000 | 15% | 15% |
| Employment Allowance | £10,500 | £10,500 |
| Class 4 (self-employed), from £12,570 to £50,270 | 6% | 6% |
| Class 4, above £50,270 | 2% | 2% |
From GOV.UK: Rates and thresholds for employers 2026 to 2027 · National Insurance rates and category letters · National Insurance rates and allowances · Employment Allowance
Dividends
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Dividend allowance | £500 | £500 |
| Basic rate | 10.75% | 8.75% |
| Higher rate | 35.75% | 33.75% |
| Additional rate | 39.35% | 39.35% |
From GOV.UK: Tax on dividends · Changes to tax rates for property, savings and dividend income
Corporation tax
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Small profits rate, up to £50,000 | 19% | 19% |
| Main rate, above £250,000 | 25% | 25% |
| Marginal relief in between | 3/200 | 3/200 |
From GOV.UK: Corporation tax rates and allowances · Corporation tax marginal relief
Student loans
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Plan 1, repaid above | £26,900 | £26,065 |
| Plan 2, repaid above | £29,385 | £28,470 |
| Plan 4 (Scotland), repaid above | £33,795 | £32,745 |
| Plan 5, repaid above | £25,000 | £25,000 |
| Repayment rate | 9% | 9% |
| Postgraduate loan, above £21,000 | 6% | 6% |
From GOV.UK: Student loan repayments
Child Benefit
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| First child, a week | £27.05 | £26.05 |
| Each other child, a week | £17.90 | £17.25 |
| Paid back from £60,000 of income | all of it from £80,000 | all of it from £80,000 |
From GOV.UK: Child Benefit rates · High Income Child Benefit Charge
Pension
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Annual allowance | £60,000 | £60,000 |
| Tapers above £260,000 of adjusted income, to | £10,000 | £10,000 |
From GOV.UK: Pension annual allowance · Work out your tapered annual allowance
VAT
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Standard rate | 20% | 20% |
| Reduced rate | 5% | 5% |
| Register once turnover in 12 months passes | £90,000 | £90,000 |
| Flat Rate Scheme, join with turnover up to £150,000 | by type of business | by type of business |
| Flat rate for a limited cost business | 16.5% | 16.5% |
From GOV.UK: VAT rates · When to register for VAT · VAT Flat Rate Scheme
Business mileage
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Car or van, first 10,000 miles | 55p a mile | 45p a mile |
| Car or van, after that | 25p a mile | 25p a mile |
From GOV.UK: Simplified expenses for vehicles
Income tax in Scotland
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Personal Allowance | £12,570 | £12,570 |
| Allowance tapers away, £1 for every £2 | £100,000 to £125,140 | £100,000 to £125,140 |
| Starter rate, up to £16,537 | 19% | Starter rate, up to £15,397 |
| Basic rate, up to £29,526 | 20% | Basic rate, up to £27,491 |
| Intermediate rate, up to £43,662 | 21% | 21% |
| Higher rate, up to £75,000 | 42% | 42% |
| Advanced rate, up to £125,140 | 45% | 45% |
| Top rate, above £125,140 | 48% | 48% |
From GOV.UK: Income tax rates and bands · Scottish income tax · Scottish income tax rates (mygov.scot)