PAYE Basics

Personal Allowance Explained (2026/27)

24 July 2026 · 7 min read

Written and reviewed by James Whitfield · Updated for 2026/27 · Editorial standards · Methodology

The standard UK personal allowance for 2026/27 is £12,570 — the tax-free amount you can earn before income tax. See how it works with the tax bands, the £100,000 taper, your tax code, and Scotland.

Contents
  1. 1. What the personal allowance is in 2026/27
  2. 2. How the personal allowance works with the tax bands
  3. 3. Losing the allowance: the £100,000 taper
  4. 4. Your personal allowance and your tax code
  5. 5. Marriage Allowance and other adjustments

Quick answer (2026/27)

The standard UK personal allowance for 2026/27 is £12,570 — the amount you can earn before paying any income tax. It is unchanged (frozen) from 2025/26 and applies UK-wide, including Scotland. Earnings from £12,570 to £50,270 are then taxed at 20%. If you earn over £100,000 the allowance is withdrawn by £1 for every £2 above that, disappearing entirely at £125,140. Your tax code — usually 1257L — reflects a full £12,570 allowance.

Summary

The personal allowance is the £12,570 you can earn tax-free in 2026/27. This guide covers how it works with the tax bands, the £100,000 taper, tax codes and Scotland.

Who this guide helps

  • Employees comparing calculator results with a payslip
  • People checking why net pay changed without a salary change
  • Job movers who need a clear baseline before comparing offers

What this guide covers

  1. What the personal allowance is in 2026/27
  2. How the personal allowance works with the tax bands
  3. Losing the allowance: the £100,000 taper
  4. Your personal allowance and your tax code
  5. Marriage Allowance and other adjustments

At-a-glance examples (2026/27)

Typical default outputs for quick context.

Gross salaryNet monthlyNet annualOpen
£20,000 £1,493.30 £17,919.60 View page
£30,000 £2,093.30 £25,119.60 View page
£50,000 £3,293.30 £39,519.60 View page

What the personal allowance is in 2026/27

The standard personal allowance for 2026/27 is £12,570. This is the amount you can earn in a tax year before you pay any income tax at all.

The allowance is frozen — it is unchanged from 2025/26 and has been held at £12,570 since 2021/22. Because wages tend to rise while the allowance stays fixed, a larger share of pay becomes taxable over time.

The personal allowance is UK-wide. It applies the same way in England, Wales, Northern Ireland and Scotland; only the tax bands above it differ in Scotland.

  • Standard personal allowance: £12,570.
  • Unchanged (frozen) from 2025/26.
  • Applies UK-wide, including Scotland.

How the personal allowance works with the tax bands

The personal allowance is the first slice of your income and is taxed at 0%. Income above it is then taxed through the bands. For England, Wales and NI in 2026/27: 20% from £12,570 to £50,270, 40% from £50,270 to £125,140, and 45% above £125,140.

For example, on a £30,000 salary the first £12,570 is tax-free and £17,430 is taxed at 20% — about £3,486 of income tax, leaving roughly £25,120 net a year after National Insurance. On £50,000, all taxable income still falls in the 20% band.

  • First £12,570: 0% (personal allowance).
  • £12,570–£50,270: 20% basic rate.
  • £50,270–£125,140: 40% higher rate.

Losing the allowance: the £100,000 taper

If your income goes above £100,000, the personal allowance is gradually withdrawn. You lose £1 of allowance for every £2 of income above £100,000, so the full £12,570 is gone by the time income reaches £125,140.

Because you lose tax-free allowance while still paying 40% on the extra income, the effective marginal tax rate between £100,000 and £125,140 is about 60% — one of the highest rates most employees ever face.

Pension contributions reduce the income used for this test, so higher earners often contribute enough to bring income back under £100,000 and keep the full allowance.

  • Taper starts at £100,000.
  • £1 lost for every £2 over £100,000.
  • Allowance reaches £0 at £125,140.

Your personal allowance and your tax code

Your tax code tells your employer how much personal allowance to give you. The standard code for 2026/27 is 1257L, where the 1257 represents a £12,570 allowance spread across the year.

A different code can mean a reduced allowance (for example if you have taxable benefits or owe tax from a previous year), an emergency code, or a second job with no allowance. If your payslip tax looks too high or too low, checking the tax code is the first thing to do.

  • 1257L = full £12,570 allowance.
  • A lower number means a reduced allowance.
  • Emergency or BR/D0 codes can apply the wrong allowance.

Marriage Allowance and other adjustments

Some people can transfer part of their allowance. Marriage Allowance lets a non-taxpayer transfer £1,260 of their personal allowance to a basic-rate-paying spouse, cutting that partner's tax by up to £252 a year.

Blind Person's Allowance adds to the standard figure, and taxable benefits in kind can reduce it. The £12,570 figure is the standard starting point that most employees use.

  • Marriage Allowance can move £1,260 between spouses.
  • Taxable benefits can reduce your allowance.
  • Most employees use the standard £12,570.

2026/27 factual reference points

Current tax-year thresholds used across this guide and calculator.

NI thresholds

  • Primary threshold: £12,570
  • Upper earnings limit: £50,270
  • Rates: 8% then 2%

Student loan plans

  • PLAN1: threshold £26,900, rate 9%
  • PLAN2: threshold £29,385, rate 9%
  • PLAN4: threshold £33,795, rate 9%
  • PLAN5: threshold £25,000, rate 9%
  • Postgraduate: threshold £21,000, rate 6%

Frequently asked questions

What is the personal allowance for 2026/27?+

The standard personal allowance for 2026/27 is £12,570. This is the amount of income you can earn in the tax year before any income tax is due. It applies UK-wide, including Scotland.

Has the personal allowance changed for 2026/27?+

No. The personal allowance is frozen at £12,570 for 2026/27, unchanged from 2025/26. It has been held at this level since 2021/22, so more income becomes taxable over time as pay rises — an effect known as fiscal drag.

When do you start losing your personal allowance?+

Once your income goes above £100,000. You lose £1 of allowance for every £2 earned above £100,000, so the full £12,570 is gone by £125,140. This produces an effective marginal tax rate of about 60% between £100,000 and £125,140.

Is the personal allowance the same in Scotland?+

Yes. The £12,570 personal allowance is set UK-wide and is identical in Scotland. Only the income tax bands and rates above the allowance differ in Scotland.

Can I test this guide topic in the calculator?+

Yes. Use the scenario links in this guide to open prefilled states, then adjust salary, region, loan and pension settings.

Are these guide pages server-rendered for indexing?+

Yes. Core content is rendered in HTML and linked to salary/city/tool pages for crawlable internal navigation.