UK tax brackets and personal allowances

Hey, do you know your tax brackets? I’m talking about the bands that determine whether you’re a basic (20%), higher (40%), or additional-rate (45%) taxpayer. Everyone knows their height and their shoe size. An occasional show-off can even tell you their inside leg measurement. But many of us have no idea where the various tax brackets start and end – nor where our income falls within these bands. True, the ongoing – and increasingly controversial – freezing of personal tax allowances and income tax thresholds has made people more aware. Yet too many people still don’t know how much of their salary they get to keep, or even how to work it out. Let’s address this with some concrete numbers. We’ll then see what your tax bracket means for your take home pay. 2026/2027 UK tax brackets The rate of tax you pay depends on your total income from all sources. This includes salary, interest, dividends, pensions, property letting, and so on. 1 You add up all this income to get your total income…