Personal Allowance
The Personal Allowance is the income you can earn each UK tax year before Income Tax starts: £12,570 for 2026/27.
The Personal Allowance is the amount of income you can receive in a UK tax year without paying Income Tax. According to GOV.UK, it is £12,570 for the tax year from 6 April 2026 to 5 April 2027.
Income above the allowance is taxed in bands: 20% basic rate from £12,571 to £50,270, 40% higher rate from £50,271 to £125,140, and 45% above £125,140 (England, Wales and Northern Ireland).
The allowance shrinks for high earners. GOV.UK says it goes down by £1 for every £2 of adjusted net income above £100,000, and it is zero at £125,140 or above.
Example: on a £40,000 salary in 2026/27, the first £12,570 is tax-free and the other £27,430 is taxed at 20%, which is £5,486 of Income Tax. On £110,000, the allowance falls by £5,000 to £7,570.
Your employer applies the allowance through your tax code; 1257L means £12,570. See your own figures in the UK take-home pay calculator.
Tools that use it
Guides that explain it
- HMRC tax refund: are you owed money back and how do you claim it?
- National Insurance rates 2026/27: what you pay and how it works
- Payments on account: when they're due and how to reduce them
- Tax year dates UK: when the tax year starts, ends and what is due
- The 60% tax trap: how the £100,000 Personal Allowance taper works