UK Tax Changes: 2025/26 vs 2026/27
Side-by-side comparison of every UK Income Tax, National Insurance, Student Loan, Dividend Tax, HICBC and Personal Savings Allowance figure that changed (or didn't) from 6 April 2026. 10 of 37 fields changed; the rest are frozen.
Source: HMRC + gov.scot + DWP publications confirmed against the canonical
src/data/tax/uk-2026-27.ts rules file in this site. Every figure traces back to
a published primary source - see methodology.
Personal Allowance + reliefs
The £12,570 Personal Allowance remains frozen through 2027/28 - eight years of cash freeze pulls more workers into 20% / 40% bands by fiscal drag every year.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| Personal Allowance | £12,570 | £12,570 | Frozen through 2027/28 per Autumn Statement 2022 policy |
| PA taper threshold | £100,000 | £100,000 | |
| Blind Person's Allowance | £3,130 | £3,250 changed | Uprated by CPI |
| Marriage Allowance transferable | £1,260 | £1,260 |
Income Tax bands (UK - England, Wales, Northern Ireland)
No change. £37,700 basic-rate ceiling, £50,270 higher-rate entry, £125,140 additional rate. The bands are frozen in cash terms.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| Band 1 | Basic rate 20% to £37,700 | Basic rate 20% to £37,700 | |
| Band 2 | Higher rate 40% to £125,140 | Higher rate 40% to £125,140 | |
| Band 3 | Additional rate 45% to ∞ | Additional rate 45% to ∞ |
Scottish Income Tax bands
Per Scottish Budget 2026/27 (published 13 January 2026): Starter rate band widened, Scottish basic rate band end lifted. Intermediate / Higher / Advanced / Top boundaries unchanged.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| Band 1 | Starter rate 19% to £2,827 | Starter rate 19% to £3,967 changed | |
| Band 2 | Scottish basic rate 20% to £14,921 | Scottish basic rate 20% to £16,956 changed | |
| Band 3 | Intermediate rate 21% to £31,092 | Intermediate rate 21% to £31,092 | |
| Band 4 | Higher rate 42% to £62,430 | Higher rate 42% to £62,430 | |
| Band 5 | Advanced rate 45% to £112,570 | Advanced rate 45% to £112,570 | |
| Band 6 | Top rate 48% to ∞ | Top rate 48% to ∞ |
National Insurance
Class 1 thresholds + rates unchanged from 2025/26. Class 2 weekly rate uprated; Small Profits Threshold uprated.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| Class 1 Primary Threshold | £12,570 | £12,570 | |
| Class 1 Upper Earnings Limit | £50,270 | £50,270 | |
| Class 1 main rate | 8% | 8% | |
| Class 1 upper rate | 2% | 2% | |
| Class 2 weekly rate | £3.50 | £3.65 changed | +15p/wk, +£7.80/yr at full year |
| Class 2 Small Profits Threshold | £6,845 | £7,105 changed | |
| Class 4 Lower Profits Limit | £12,570 | £12,570 | |
| Class 4 Upper Profits Limit | £50,270 | £50,270 | |
| Class 4 main rate | 6% | 6% |
Dividend tax
Autumn Budget 2025 raised dividend ordinary + upper rates by 2pp from April 2026; additional rate unchanged. Allowance held at £500.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| Dividend allowance | £500 | £500 | |
| Ordinary rate (basic) | 8.75% | 10.75% changed | Autumn Budget 2025: +2pp on basic + higher rates |
| Upper rate (higher) | 33.75% | 35.75% changed | |
| Additional rate | 39.35% | 39.35% |
High Income Child Benefit Charge (HICBC)
Unchanged from 2025/26. Charge starts at £60,000 adjusted net income, fully clawed back at £80,000.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| HICBC lower threshold | £60,000 | £60,000 | |
| HICBC upper threshold | £80,000 | £80,000 | Charge clawed back fully at upper threshold |
Student loans
Plans 1/2/4 thresholds uprated; Plans 5 and Postgraduate held flat by policy. Rate unchanged at 9% (6% for Postgrad).
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| Plan 1 threshold | £26,065 | £26,900 changed | |
| Plan 2 threshold | £28,470 | £29,385 changed | |
| Plan 4 threshold (Scotland) | £32,745 | £33,795 changed | |
| Plan 5 threshold | £25,000 | £25,000 | Held flat by policy |
| Postgraduate Loan threshold | £21,000 | £21,000 | Held flat by policy |
Personal Savings Allowance + Starting Rate
Frozen since 2016. The PSA is increasingly nominal in real terms.
| Item | 2025/26 | 2026/27 | Note |
|---|---|---|---|
| PSA - basic rate | £1,000 | £1,000 | |
| PSA - higher rate | £500 | £500 | |
| PSA - additional rate | £0 | £0 | |
| Starting Rate for Savings allowance | £5,000 | £5,000 |
Why this matters
- Fiscal drag is the biggest hidden tax rise. The frozen £12,570 Personal Allowance and £50,270 higher-rate threshold pull approximately 400,000 additional workers into the 40% band each year of the freeze. HMRC projects 7.08 million higher-rate taxpayers in 2025/26 (+38.7% vs 2022/23) and 1.23 million additional-rate taxpayers (+115.3%).
- Scottish divergence widens. Scottish marginal rate above £62,430 is 45% (Advanced rate) vs 40% England/Wales/NI. Top rate 48% above £112,570 vs 45% above £125,140. Salary sacrifice into pension is materially more tax-efficient for Scottish higher earners.
- Dividend tax +2pp from April 2026. Ordinary rate 8.75% → 10.75% and upper rate 33.75% → 35.75% (Autumn Budget 2025). Owner-managed Ltd companies extracting via salary + dividend lose £1,800-£2,200/year of post-tax extraction at £100,000 profit.
- Class 2 NI no longer compulsory above SPT. Class 2 was made voluntary from April 2024 for profits above the Small Profits Threshold. Many self-employed still opt in voluntarily (£3.65/wk = £189.80/yr in 2026/27) to bank Maternity Allowance + State Pension qualifying years.
Calculate your 2026/27 take-home
All site calculators use the 2026/27 rules above as the canonical data source.
- Salary calculator - full take-home + region + pension
- Dividend tax calculator - 2026/27 +2pp rates
- HICBC calculator - £60k-£80k taper
- Self-employed calculator - Class 2 + Class 4 NI
- Scottish Income Tax bands 2026/27 - full Scottish breakdown