Headline tax rates and allowances for 2026/27

Overview

These headline figures are a starting point only. Residence, Scotland-specific income tax, associated companies, reliefs, other income and the precise transaction can change the calculation. Always check the linked official guidance and obtain advice before acting.

Who this applies to

Individuals, employers, sole traders, directors and small companies needing a quick current-year reference.

Key points

• Personal Allowance: £12,570, tapered for adjusted net income above £100,000.
• England, Wales and Northern Ireland basic rate: 20% on the basic-rate band; higher rate 40%; additional rate 45%.
• Dividend allowance: £500; 2026/27 dividend rates are 10.75%, 35.75% and 39.35%.
• Employee Class 1 National Insurance: 8% between the main thresholds and 2% above the upper threshold.
• Self-employed Class 4 National Insurance: 6% between £12,570 and £50,270, then 2%.
• Corporation Tax: 19% small profits rate, 25% main rate, with marginal relief between £50,000 and £250,000 before associated-company adjustments.
• VAT registration threshold: £90,000; optional deregistration threshold: £88,000.
• Capital Gains Tax annual exempt amount for most individuals: £3,000.
• Inheritance Tax nil-rate band: £325,000; residence nil-rate band up to £175,000 where conditions are met.
• National Living Wage age 21 and over: £12.71 per hour from April 2026.

Practical checklist

1. Confirm the relevant jurisdiction and tax year.
2. Check whether thresholds are reduced by associated companies or short periods.
3. Review special rates, reliefs and exemptions.
4. Use official guidance for the final calculation.

Frequently asked questions