What is the personal allowance?
The personal allowance is the amount of income you can receive each year before paying any income tax. In the UK it is £12,570 for 2026/27. It shrinks by £1 for every £2 of income above £100,000, so it disappears completely at £125,140. It is frozen until April 2031.
Everyone resident in the UK gets the personal allowance, whatever their age. It applies to most income, including wages, pensions and rent. If you earn less than £12,570, you pay no income tax at all, although you may still pay National Insurance above a lower level. Most employees get the allowance through their tax code. The common code 1257L shows an allowance of £12,570.
The allowance rose sharply during the 2010s, from £6,475 in 2010/11 to £12,500 in 2019/20. It reached £12,570 in 2021 and has stayed there since. Because pay keeps rising while the allowance is frozen, millions more people now pay income tax. Economists call this fiscal drag. The Treasury gains billions from the freeze. It is one of the main ways the government has raised tax without changing headline rates.
Some people can boost their allowance. The Marriage Allowance lets a lower earner transfer £1,260 to a basic rate spouse. The Blind Person's Allowance adds £3,250. Raising the allowance is a popular way to cut tax for low and middle earners. But it is expensive, because everyone below the taper point gains.
Who it affects: Everyone with taxable income
The left often argues that raising the allowance helps middle earners more than the poorest, many of whom already pay no income tax.
The right often champions raising the allowance as a simple way to let working people keep more of their pay.
Britain is split. Now you decide.
Unfreeze or raise the personal allowance in the Population Decides Budget and see what it costs and how voters respond.
Play Population Decides freeCommon questions
What is the personal allowance for 2026/27?
It is £12,570, the same as every year since 2021/22.
Do you lose the personal allowance over £100,000?
Yes. It falls by £1 for every £2 above £100,000 and is gone at £125,140.
Can I transfer my personal allowance?
Through the Marriage Allowance, a spouse or civil partner can transfer £1,260 to a basic rate taxpayer partner.