For the 2026/27 tax year, the standard Personal Allowance is £12,570. That is the amount you can earn in a year before you pay any income tax at all. Earn below it and, on income tax alone, you pay nothing; earn above it and only the part above £12,570 is taxed. It is the single most important number on your payslip, and it quietly shapes the take-home pay of almost every worker in the UK.
This guide explains exactly what the Personal Allowance is, the figures that apply for 2026/27, how it feeds into the tax you actually pay, and the handful of situations that can raise or shrink it — including the £100,000 trap that pushes some earners into a 60% effective tax rate.
What is the Personal Allowance?
The Personal Allowance is a slice of tax-free income. Everyone with a standard tax code gets it, and it is applied before any income tax is calculated. Picture your salary in two parts: the first £12,570 sits in a tax-free zone, and everything above it is sorted into the tax bands. Only the second part is ever taxed.
It applies to income tax only. National Insurance works on its own separate thresholds, which is why you can still see a National Insurance deduction on earnings that feel “tax-free” — the two systems don’t share the same starting line.
The Personal Allowance for 2026/27 — the key numbers
| Item | 2026/27 |
|---|---|
| Standard Personal Allowance | £12,570 |
| Standard tax code | 1257L |
| Income where the allowance starts to taper | £100,000 |
| Income where the allowance reaches £0 | £125,140 |
The £12,570 figure has been frozen for several years and is currently held until the end of the 2027/28 tax year. Because the allowance is frozen while wages rise, more income gradually falls into the taxable bands over time — an effect often called fiscal drag.
How your Personal Allowance affects the tax you pay
Here is the allowance doing its job on a £30,000 salary in 2026/27:
| Step | Amount |
|---|---|
| Gross salary | £30,000 |
| Less Personal Allowance (tax-free) | −£12,570 |
| Taxable income | £17,430 |
| Income tax at 20% | £3,486 |
Only £17,430 of the £30,000 is taxed, and all of it falls inside the basic-rate band, so it is taxed at 20%. The first £12,570 is never touched by income tax. If you want to see this worked through for your own salary, the 2026/27 income tax bands sit directly on top of the allowance.
The £100,000 trap: how the taper works
Above £100,000 of income, the Personal Allowance is withdrawn. For every £2 you earn over £100,000, you lose £1 of allowance. By £125,140 it has gone entirely and you get no tax-free income at all.
Worked example at £110,000:
- Income over £100,000: £10,000
- Allowance lost (£1 for every £2): £5,000
- Remaining Personal Allowance: £7,570
The 60% effective rate. Inside the £100,000–£125,140 band, each extra £100 you earn is taxed at 40% (£40) and strips away £50 of allowance — and that £50, which used to be tax-free, is now taxed at 40% too (£20). That is £60 of tax on £100 of pay: a 60% effective marginal rate, higher than the headline 45% additional rate. Pension contributions and other reliefs are the usual way people manage this band.
Things that change your Personal Allowance
- Marriage Allowance. If you earn below the allowance and your partner is a basic-rate taxpayer, you can transfer £1,260 of your allowance to them, cutting their tax bill.
- Blind Person’s Allowance. An extra tax-free amount added on top of the standard allowance for those who are certified blind or severely sight impaired.
- Your tax code. Company benefits, untaxed income, or owing tax from a previous year can all change your code — and therefore your real tax-free amount — away from the standard 1257L.
- High income. The £100,000 taper above, which reduces or removes the allowance entirely.
How to work out your own tax-free position
- Find your annual gross income.
- If it is £100,000 or less, your Personal Allowance is £12,570. If it is more, reduce £12,570 by £1 for every £2 over £100,000.
- Subtract the allowance from your income — what’s left is your taxable income.
- Apply the income tax bands to that taxable figure.
Want the exact figure without the maths? Try the free Payslp salary calculator → — it applies your 2026/27 Personal Allowance, tax code and National Insurance automatically and shows your take-home for the year, month and week.
Frequently asked questions
What is the Personal Allowance for 2026/27?
£12,570. This is the amount of income you can earn before paying any income tax, and it applies to most employees on the standard 1257L tax code.
Why is my Personal Allowance lower than £12,570?
The most common reasons are earning over £100,000 (where the allowance tapers away), or a tax code adjusted for company benefits, untaxed income, or tax owed from an earlier year. Your tax code on your payslip reflects your actual tax-free amount.
Does everyone get the Personal Allowance?
Most UK taxpayers do. It is withdrawn for income over £100,000 and disappears entirely at £125,140. Some non-residents and specific circumstances are treated differently.
Is the Personal Allowance the same in Scotland?
Yes — the £12,570 Personal Allowance is set UK-wide. What differs is the income tax rates and bands applied above it, which the Scottish Parliament sets separately.
These figures apply to the 2026/27 tax year for individuals in England, Wales and Northern Ireland on the standard tax code, and are based on HMRC’s published rates and thresholds. The Personal Allowance is set UK-wide, but Scottish income tax rates above it differ. This is general information to help you understand the rules — it is not personal tax or financial advice. Always check your own tax code and circumstances.