23 August 2026
How UK Income Tax Bands Work in 2026
Understanding UK income tax bands doesn't have to be confusing. The UK operates a progressive tax system where you only pay higher rates on income within each band—not your entire salary. For 2026/27, the Personal Allowance remains frozen at £12,570, with Basic Rate (20%), Higher Rate (40%), and Additional Rate (45%) bands applying to different portions of your income. Learn how the 60% tax trap affects earners between £100,000 and £125,140, discover strategies to reduce your tax bill, and see step-by-step worked examples for £35,000 and £60,000 salaries.
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