UK 40% Tax Bracket (2026/27)
The 40% higher rate starts above £50,270 in 2026/27; with 2% NI the marginal rate is 42%. Take-home from £50k to £99k, rest of UK.
Outside Scotland, the 40% higher rate of Income Tax applies to income above £50,270 in 2026/27. Add the 2% employee National Insurance charged above the same point and the marginal rate is 42%. The threshold has not moved since 2021/22 and is frozen until 5 April 2031, so pay rises keep pulling more people into the higher band ("fiscal drag").
Take-home as you cross the threshold
England, 2026/27, no pension contribution or student loan, computed by the site's salary calculator:
| Gross salary | Annual take-home | Monthly |
|---|---|---|
| £50,000 | £39,520 | £3,293 |
| £55,000 | £42,457 | £3,538 |
| £60,000 | £45,357 | £3,780 |
| £70,000 | £51,157 | £4,263 |
| £80,000 | £56,957 | £4,746 |
| £90,000 | £62,757 | £5,230 |
| £99,000 | £67,977 | £5,665 |
Combined marginal rates by band (employee, rest of UK)
- Up to £12,570 (Personal Allowance): 0% Income Tax + 0% NI = 0%.
- £12,571 to £50,270 (basic rate): 20% IT + 8% NI = 28%.
- £50,271 to £100,000 (higher rate): 40% IT + 2% NI = 42%.
- £100,001 to £125,140 (higher rate + Personal Allowance taper): 40% + 20% from the lost allowance + 2% NI = 62%.
- Above £125,140 (additional rate): 45% + 2% = 47%.
These are the rates on employment income with the standard Personal Allowance. The High Income Child Benefit Charge adds to them between £60,000 and £80,000 of adjusted net income if you or your partner get Child Benefit.
Related
Frequently asked questions
When does the 40% tax bracket start in the UK?
Outside Scotland, the 40% higher rate applies to income above £50,270 in 2026/27: the £37,700 basic rate band on top of the £12,570 Personal Allowance. An employee pays 2% National Insurance on earnings above the same point, so the combined marginal rate is 42%. The figures have not changed since the 2021/22 tax year and are frozen until 5 April 2031.
Why is the effective marginal rate 42% not 40%?
The 40% is Income Tax only. Employee Class 1 National Insurance is also charged, at 2% on earnings above £50,270, giving 42%. Below that point NI is 8%, so a basic-rate employee pays 28% on each extra pound (20% Income Tax plus 8% NI).
Is the 40% band different in Scotland?
Yes. Scotland sets its own bands. For someone with the standard Personal Allowance in 2026/27, the Scottish higher rate of 42% applies above £43,662, the advanced rate of 45% above £75,000, and the top rate of 48% above £125,140. National Insurance is UK-wide and does not change.
When does the 40% band end?
The higher rate runs up to £125,140; the 45% additional rate applies above it. Between £100,000 and £125,140 the Personal Allowance is withdrawn £1 for every £2 of adjusted net income, which makes the marginal rate 62% including NI.
How do I avoid paying 40% on a pay rise?
You cannot change the rate, but you can choose where the money goes. Salary sacrifice into a workplace pension avoids 40% Income Tax and 2% NI on the amount sacrificed. Personal pension contributions that get relief at source, and Gift Aid donations, extend your basic rate band by the grossed-up amount, so that much more income is taxed at 20%. Savings interest and dividends are not a way out: they sit on top of your earnings in the same bands, with their own allowances.