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Personal Allowance: How Much You Can Earn Before Tax

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Checked against GOV.UK. Edited by Steven Butler.

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The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on. The current tax year is from 6 April 2026 to 5 April 2027. Your allowance goes down by £1 for every £2 of adjusted net income above £100,000, so it is zero at £125,140 or above.

Key points
  • ✓Outside Scotland, basic rate tax is 20% on taxable income from £12,571 to £50,270.
  • ✓Scotland has its own rates, from a 19% starter rate to a 48% top rate.
  • ✓Blind Person's Allowance adds £3,250 to your Personal Allowance in the 2026 to 2027 tax year.
  • ✓You also get a dividend allowance of £500 each year, and a basic rate taxpayer can earn up to £1,000 of savings interest without paying tax on it.

What is the Personal Allowance?

It is the amount of income you can have each tax year before you pay Income Tax. How much Income Tax you pay depends on how much of your income is above your Personal Allowance and how much falls within each tax band.

If you are employed or get a pension, your tax code tells your employer or pension provider how much tax-free income you get. 1257L is the tax code currently used for most people who have one job or pension, and our guide to tax codes explains the numbers and letters.

What are the Income Tax bands?

These are the rates if you do not live in Scotland and have the standard Personal Allowance of £12,570. The Welsh Government sets the Welsh rates, and GOV.UK's Welsh table for 2026 to 2027 has these bands and rates.

BandTaxable incomeTax rate
Personal AllowanceUp to £12,5700%
Basic rate£12,571 to £50,27020%
Higher rate£50,271 to £125,14040%
Additional rateover £125,14045%

You do not get a Personal Allowance on taxable income over £125,140. Income Tax bands are different if you live in Scotland.

How much Income Tax do you pay at each band edge?

This table works out the yearly Income Tax at the edges of each band, with the standard Personal Allowance and the rates outside Scotland. It is Income Tax only, without National Insurance.

Taxable incomeIncome Tax for the yearHow it is worked out
£12,570£0All of it is covered by the Personal Allowance
£35,000£4,48620% on £22,430 (£35,000 minus £12,570)
£50,270£7,54020% on £37,700 (£50,270 minus £12,570)
£100,000£27,432£7,540 at the basic rate, then 40% on £49,730 (£100,000 minus £50,270)

The £35,000 row is GOV.UK's own example: with £35,000 of taxable income and the standard Personal Allowance, basic rate tax at 20% is paid on £22,430.

What happens to the Personal Allowance over £100,000?

Your Personal Allowance goes down by £1 for every £2 that your adjusted net income is above £100,000. At £125,140, your income is £25,140 above £100,000, which takes away £12,570, the whole standard allowance.

Tax reliefs can reduce the tax you pay, for example on private pension contributions and charity donations.

How is Income Tax different in Scotland?

You pay Scottish Income Tax if you live in Scotland. It applies to your wages, pension and most other taxable income, but you pay the same tax as the rest of the UK on dividends and savings interest.

Scottish bandTaxable incomeTax rate
Personal AllowanceUp to £12,5700%
Starter rate£12,571 to £16,53719%
Basic rate£16,538 to £29,52620%
Intermediate rate£29,527 to £43,66221%
Higher rate£43,663 to £75,00042%
Advanced rate£75,001 to £125,14045%
Top rateover £125,14048%

Your tax code will be S1257L if you pay Scottish Income Tax and get the standard Personal Allowance of £12,570. If you have a home in Scotland and one elsewhere in the UK, your main home is usually where you live and spend most of your time.

Which other allowances can you get?

Some allowances are added to your Personal Allowance, and others sit alongside it for one kind of income.

AllowanceAmountWho it is for
Blind Person's Allowance£3,250 for 2026 to 2027Added to your Personal Allowance if you are eligible
Personal Savings Allowance£1,000 basic rate, £500 higher rate, £0 additional rateInterest on savings
Starting rate for savingsUp to £5,000 of interestPeople whose other taxable income is less than £17,570
Dividend allowance£500 each yearDividends from shares
Trading allowanceYour first £1,000 of incomeSelf-employment
Property allowanceYour first £1,000 of incomeProperty you rent, unless you use the Rent a Room Scheme

If your income is less than the standard Personal Allowance, you may be able to claim Marriage Allowance to reduce your partner's tax. Our Marriage Allowance guide explains who can transfer part of their allowance.

Who can get Blind Person's Allowance?

In England and Wales, you can claim if you are registered with your local council as blind or severely sight impaired and you have a certificate that says so, or a similar document from your doctor. In Scotland and Northern Ireland, you can claim if you cannot do work that eyesight is essential for.

You claim by contacting HMRC on 0300 200 3301. You can transfer the allowance to your spouse or civil partner if you do not pay tax or earn enough to use all of it.

How do you check your own Personal Allowance?

If you are employed or get a pension, the Check your Income Tax service on GOV.UK shows your Personal Allowance and tax code, how much tax you have paid in the current tax year, and how much you are likely to pay for the rest of the year.

If you think you have paid too much, our guide to claiming a tax refund sets out how to get it back, and our tax guides cover the other questions.

Where to go next

Tax
Tax codes
What the letters and numbers in your code mean and how to fix a wrong one.
Marriage Allowance
Moving part of your allowance to your husband, wife or civil partner.
Tax refund
How to claim back tax you should not have paid.
Inheritance Tax
When tax is due on an estate and how it is worked out.

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https://www.knowyourrightsuk.com/tax/personal-allowance
Know Your Rights UK. "Personal Allowance: How Much You Can Earn Before Tax." Know Your Rights UK, https://www.knowyourrightsuk.com/tax/personal-allowance