New tax year 2026/27: what changed for your take-home
Almost every headline rate stayed put this April — and that is the real story, because frozen thresholds quietly raise your average tax rate every time your pay rises. Here is what moved, what froze, and what it costs.
What changed on 6 April 2026
| Threshold | 2025/26 | 2026/27 | Effect |
|---|---|---|---|
| Personal allowance | £12,570 | £12,570 | frozen8th year running |
| Higher-rate threshold (England/Wales/NI) | £50,270 | £50,270 | frozen |
| Employee NI (8% / 2%) | — | — | frozento 2028 |
| Scottish starter band top | £15,397 | £16,537 | wider+£1,140 at 19% |
| Scottish basic band top | £27,491 | £29,526 | widerupper bands frozen |
| Plan 1 loan threshold | £26,065 | £26,900 | +£835saves up to £75/yr |
| Plan 2 loan threshold | £28,470 | £29,385 | +£915saves up to £82/yr |
| Plan 4 loan threshold | £32,745 | £33,795 | +£1,050saves up to £95/yr |
| Postgrad loan threshold | £21,000 | £21,000 | frozen |
Sources: HMRC and gov.scot published rates, re-verified June 2026 — each table in the engine carries its source URLs and is refreshed every April.
Why 'nothing changed' costs you money
If your pay rises 4% under frozen thresholds, more of your salary sits in higher bands than last year — your average rate climbs without any Budget headline. That is fiscal drag, and 2026/27 is another full year of it: the personal allowance has now been £12,570 since 2021, while wages have grown by roughly a third. The practical effect shows up exactly where this site looks: rises keep less than people expect (59p in the pound is typical with a Plan 2 loan), and six-figure offers meet the £100k taper at a threshold that has never moved.
The loan-threshold rises are the one genuine giveaway: up to £82 a year back for Plan 2 borrowers. If you hold two loans, both thresholds moved except the postgraduate one — frozen at £21,000 since 2021. Scottish earners under roughly £30,000 gain a few pounds from the wider starter and basic bands; above £43,663 nothing changed (the Scotland vs rest-of-UK comparison).
This page is refreshed every April alongside the engine's rate tables — the calculator always carries both the current and previous year, so you can compare an offer under the rules it will actually be paid under.
Run your own numbers
The calculator opens with a fully worked example — change anything and every figure recomputes live, in your browser. Nothing you type is uploaded.