UK Tax Rates 2027/28
The 2027/28 rates as published in Budget 2026 — a preview, not yet the live tax year. The main rates are unchanged; the changes are in savings, property and the trading allowance.
Published rates, subject to change at future fiscal events. Last checked against GOV.UK on 5 November 2026. If any figure here conflicts with GOV.UK, GOV.UK wins — please tell us the same day.
Main rates: unchanged
Budget 2026 OOTLAR Annex A publishes the 2027/28 main rates unchanged from 2026/27. These are the rates that decide most people's payslips:
| Personal allowance | £12,570 |
|---|---|
| Basic rate | 20% on taxable income up to £37,700 |
| Higher rate | 40% on taxable income up to £125,140 |
| Additional rate | 45% above £125,140 |
| Employee National Insurance | 8% to £50,270, then 2% |
| Employer National Insurance | 15% above £5,000 |
| Employment Allowance | £10,500 |
| Dividend rates (allowance £500) | 10.75% / 35.75% / 39.35% |
| Class 4 National Insurance | 6% £12,570–£50,270, then 2% |
| Corporation Tax | 19% up to £50,000, 25% above £250,000 |
Source: GOV.UK — Budget 2026 OOTLAR, Annex A. Checked 5 November 2026.
What does change in 2027/28
The main rates are unchanged — but not all rates are unchanged. These are the changes published for 2027/28:
| Item | 2026/27 | 2027/28 |
|---|---|---|
| Savings rates | 20% / 40% / 45% | 24% / 44% / 49% |
| Property rates (new) | 20% / 40% / 45% | 24% / 44% / 49% |
| Lower Earnings Limit | £129 / week | £133 / week |
| Class 2 small-profits threshold | £7,105 | £7,355 |
| Voluntary Class 2 | £3.65 / week | £3.80 / week |
| Trading allowance | £1,000 | £3,000 |
The savings and property rises are the significant change: income from savings and property will be taxed at 24% in the basic-rate band instead of 20%. The trading allowance tripling — from £1,000 to £3,000 of gross trading income a year, tax-free — is the biggest practical win for side hustles and the smallest traders.
What this means for your pay
If your only income is a salary, nothing changes: the take-home pay calculator on 2027/28 rates gives the same figure as on 2026/27 rates, to the penny, for most salaries. The personal allowance taper is unchanged too — above £100,000 you still lose £1 of allowance for every £2 you earn, with the allowance gone at £125,140. What changes is everything around the payslip: savings interest, property income, and the trading allowance. Read the full preview in New tax year 2027/28: what changes on 6 April (draft — publishes February 2027) and the April checklist in The April checklist (draft — publishes April 2027).
The live rates are on UK tax rates 2026/27. This page will be updated within 48 hours of any fiscal event that changes the 2027/28 position, and the change will be logged in the changelog.