2026/27 income tax and NI
| Band | Taxable income | Rate |
|---|---|---|
| Personal allowance | up to £12,570 | 0% |
| Basic rate | £12,571–£50,270 | 20% |
| Higher rate | £50,271–£125,140 | 40% |
| Additional rate | over £125,140 | 45% |
Thresholds stay frozen until April 2031. Employee Class 1 National Insurance is 8% on earnings between £12,570 and £50,270 and 2% above.
The 60% tax trap
Your personal allowance falls by £1 for every £2 of income over £100,000, disappearing at £125,140. Pension contributions reduce adjusted net income and can restore it.
Student loan thresholds 2026/27
Plan 1 £26,900 · Plan 2 £29,385 · Plan 4 £33,795 · Plan 5 £25,000 (9% above the threshold) · Postgraduate £21,000 (6%).
FAQ
How much is £45,000 after tax in 2026/27?
About £2,993 a month (£35,920 a year) with no pension or student loan: £6,486 income tax and £2,594 National Insurance.
What is the personal allowance for 2026/27?
£12,570, frozen until 2031. It is reduced by £1 for every £2 of adjusted net income above £100,000.
Does salary sacrifice save National Insurance?
Yes. Salary-sacrifice pension contributions reduce both income tax and National Insurance; net-pay and relief-at-source contributions only reduce income tax.