How to compare tax years
- Enter your pay in 2026/27 and pick whether it is per year, month, week or hour.
- If you earned a different amount last year, switch on My pay was different in 2025/26 and enter that amount too. Otherwise the same pay is used for both years, which shows the effect of the rule changes alone.
- Choose where you live and tick any student loan plans you repay.
- Open Pension, bonus and more for pension contributions, a bonus or Blind Person's Allowance.
- Read the change in take-home pay at the top, the side-by-side table and the list of What changed in 2026/27. Items marked “Affects you” apply to the options you chose.
What changed between 2025/26 and 2026/27
The 2026/27 tax year runs from 6 April 2026 to 5 April 2027. For most employees, the headline numbers did not move:
- Personal allowance: still £12,570. It is reduced by £1 for every £2 of income over £100,000 and is gone at £125,140.
- England, Wales and Northern Ireland: still 20% basic rate up to £50,270, 40% higher rate up to £125,140 and 45% above that (with the standard allowance).
- National Insurance: employees still pay 8% between £12,570 and £50,270 and 2% above. Only the lower earnings limit, which decides whether a year counts towards your State Pension, rose from £6,500 to £6,708.
- Scotland: the starter (19%) band now ends at £3,967 of taxable income, up from £2,827. The basic (20%) band now ends at £16,956, up from £14,921. With the standard allowance, the 21% intermediate rate starts at £29,527 instead of £27,492. The higher (42%), advanced (45%) and top (48%) thresholds did not change.
- Student loans: the repayment thresholds rose. Plan 1 went from £26,065 to £26,900, Plan 2 from £28,470 to £29,385 and Plan 4 from £32,745 to £33,795. The Postgraduate Loan stays at £21,000. Plan 5 repayments start in 2026/27, at 9% of pay over £25,000.
- Workplace pensions: the auto-enrolment trigger (£10,000) and qualifying earnings (£6,240 to £50,270) are unchanged.
Those are the changes that affect take-home pay. Dividend tax rates also went up in April 2026 (ordinary rate 10.75%, upper rate 35.75%), but that only matters if you have dividends outside an ISA or pension. This calculator covers employment income.
Fiscal drag: why frozen thresholds cost you money
When thresholds are frozen and pay rises, more of each pay packet falls into the taxed bands, and some people move into a higher band. This is called fiscal drag. The Budget 2025 extended the freeze on the personal allowance, the higher-rate and additional-rate thresholds and the NI thresholds by three more years, until April 2031. Switch on My pay was different in 2025/26 to see it with your own numbers: if your pay goes up, your tax and NI go up by a bigger percentage.
Worked examples
Same pay in England. On £35,000 with no student loan, income tax is £4,486 and NI is £1,794.40 in both years, so take-home pay stays at £28,719.60. If you repay a Plan 2 loan, the higher threshold cuts the repayment from £587.70 to £505.35, so you keep £82.35 a year more.
Same pay in Scotland with Plan 2. On £35,000, income tax falls from £4,532.82 to £4,501.07 because the starter and basic bands are wider. The student loan falls by £82.35, so take-home pay rises from £28,085.08 to £28,199.18: £114.10 a year more.
Fiscal drag in England. A 3% rise from £35,000 to £36,050 adds £1,050 of gross pay. Income tax and NI go up from £6,280.40 to £6,574.40, which is 4.7%, faster than the pay. Take-home pay rises by £756.
Why your payslips may differ
These are full-year figures for steady pay on the standard 1257L code (S1257L in Scotland). Your payslips can differ if your tax code isn't standard, if your pay changes during the year, or if you have benefits in kind. They can also differ a little because NI and student loans are worked out per pay period. Your April 2026 payslip was the first one under the new rules. Any bonus or back pay paid after 6 April falls in 2026/27, even if you earned it earlier.
Related calculators
For one year in full detail, use the UK salary calculator. To weigh up a new job, use the salary comparison calculator. To find the salary you'd need for a target income, use the net to gross salary calculator. If you have more than one job, try the two jobs tax calculator. You can see all the tools on the salary and money calculators page.
Frequently asked questions
Will I pay more tax in 2026/27 than in 2025/26?
Not on the same pay in England, Wales or Northern Ireland: the bands and allowance are unchanged. In Scotland you pay slightly less, because the starter and basic bands are wider. If your pay went up, you pay more, and because the thresholds are frozen, your tax goes up faster than your pay.
Is the personal allowance going up in 2026/27?
No. It stays at £12,570, and under the Budget 2025 it remains frozen until April 2031.
Did National Insurance change in April 2026?
Not for employees: still 8% between £12,570 and £50,270 and 2% above. The lower earnings limit for State Pension credits rose to £6,708 a year.
What are the student loan thresholds for 2026/27?
Plan 1 £26,900, Plan 2 £29,385, Plan 4 £33,795, Plan 5 £25,000 and the Postgraduate Loan £21,000 a year. You repay 9% of pay over the plan threshold, or 6% for the Postgraduate Loan.
What are the Scottish tax bands for 2026/27?
With the standard allowance: 19% from £12,571 to £16,537, 20% to £29,526, 21% to £43,662, 42% to £75,000, 45% to £125,140 and 48% above that.
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