UK Personal Allowance (2026/27)
The Personal Allowance for 2026/27 is £12,570 - the slice of income on which you pay no Income Tax. The threshold has been frozen since April 2021, so real wage growth quietly pulls more earners into the higher tax bands every year through "fiscal drag". Above £100,000 of adjusted net income the allowance tapers away, gone entirely by £125,140.
Allowance tapering above £100,000
| Adjusted net income | Available PA | Tax cost of taper |
|---|---|---|
| Up to £100,000 | £12,570 (full) | £0 |
| £100,001 to £110,000 | £7,570 to £12,570 | up to £2,000 |
| £110,001 to £125,140 | £0 to £7,570 | up to £5,028 |
| Above £125,140 | £0 | £5,028 (full) |
The £100,000 to £125,140 band produces the UK's 60% effective marginal Income Tax rate (62% including 2% NI) - see the 60% tax trap explainer.
PA forms
- Standard Personal Allowance: £12,570 (frozen 2021-2028).
- Marriage Allowance: transfer £1,260 of unused PA to spouse, max benefit £252.
- Blind Person's Allowance: +£3,070 if registered sight-impaired.
- Married Couple's Allowance: available only to couples where at least one spouse was born before 6 April 1935.
Frequently asked questions
- What is the UK Personal Allowance for 2026/27?
- The standard Personal Allowance for 2026/27 is £12,570 - the slice of income on which you pay no Income Tax. It has been frozen at £12,570 since 6 April 2021 (originally announced as a 5-year freeze, extended in successive Budgets). The freeze means real wage growth has been pulling more earners into the basic and higher rate bands - so-called "fiscal drag".
- Does everyone get the £12,570 Personal Allowance?
- No. The allowance tapers above £100,000 of adjusted net income - reduced by £1 for every £2 earned above £100k. By £125,140 the allowance is fully removed. UK non-residents may not be entitled to a PA depending on tax-treaty status and the Statutory Residence Test outcome.
- Can I transfer my Personal Allowance to my spouse?
- Yes - the Marriage Allowance lets a non-taxpayer or basic-rate taxpayer transfer £1,260 of their Personal Allowance to their spouse or civil partner (so the higher earner gets a £252 tax saving). Both must be born after 5 April 1935, and the transferring spouse must earn below the Personal Allowance threshold while the recipient must be a basic-rate taxpayer.
- What is the Blind Person's Allowance?
- If you're registered as severely sight-impaired (England and Wales) or unable to perform any work for which eyesight is essential (Scotland and Northern Ireland), you get an additional £3,070 of tax-free Personal Allowance on top of the standard £12,570 for 2026/27 (raised annually with CPI). Unlike the standard PA, the Blind Person's Allowance is transferable to a spouse.
- How does the Personal Allowance interact with savings?
- The £12,570 PA covers all forms of UK taxable income - employment, self-employment, pension, taxable savings interest, rental income, taxable dividends. On top of the PA, savers also get up to £5,000 of "starting rate for savings" at 0% (only if their non-savings income is below £17,570), plus the £1,000 / £500 / £0 Personal Savings Allowance and the £500 Dividend Allowance.
- When was the Personal Allowance last increased?
- The PA rose from £12,500 to £12,570 in April 2021 and has been frozen ever since. The freeze is currently scheduled to end in April 2028, after which the PA is expected to resume rising with CPI - though successive Budgets have extended the freeze in the past, so the 2028 unfreezing is not guaranteed.