Tax Year Comparison: 2026/27 Against 2025/26
Find out whether you are better or worse off than last year, and why.
| 2025/26 | 2026/27 | Change | |
|---|---|---|---|
| Salary | £35,000 | £35,000 | +£0 |
| Income tax | £4,486 | £4,486 | +£0 |
| National Insurance | £1,794 | £1,794 | +£0 |
| Take-home pay a year | £28,720 | £28,720 | +£0 |
| Take-home pay a month | £2,393 | £2,393 | +£0 |
Of that change, +£0 a year comes from your pay change and +£0 from changes to tax rules and thresholds.
Compares the two tax years using the official rates for each (England, Wales and Northern Ireland tax bands did not change). Differences come from the Scottish starter and basic rate thresholds and student loan thresholds, plus any change in your pay.
What changed between 2025/26 and 2026/27?
- England, Wales and Northern Ireland: the Personal Allowance (£12,570), the income tax bands and the National Insurance thresholds and rates are the same as last year. The thresholds have been frozen, so if your pay rises you may pay more tax as a share of your income.
- Scotland: the Scottish Government raised the starter and basic rate thresholds for 2026/27 (the starter band now ends at £16,537 instead of £15,397, and the basic band at £29,526 instead of £27,491), which lowers tax for many Scottish taxpayers.
- Student loans: repayment thresholds rise: Plan 1 from £26,065 to £26,900, Plan 2 from £28,470 to £29,385 and Plan 4 from £32,745 to £33,795. Plan 5 loans start repaying in April 2026 at £25,000.
- Other changes such as the minimum wage, State Pension and statutory payments also rose. See the UK tax rates for 2026/27.
Example: someone on £35,000 with a Plan 2 loan repays £588 a year in 2025/26 and £505 in 2026/27, which is £82 less.
How the comparison is worked out
The calculator works out your take-home pay under each year’s official rules. It then separates the change into the part caused by a change in your pay and the part caused by changes to tax rules and thresholds.
Fiscal drag
When tax thresholds stay frozen while wages rise, more of your income falls into higher tax bands. This is called fiscal drag, and it means a pay rise is worth less after tax than it first looks. Try our pay rise calculator to see how much of a rise you keep.
Sources: GOV.UK: Income Tax rates and allowances, current and past, GOV.UK: Income Tax rates and Personal Allowances. Figures last checked on 8 October 2026.
Frequently asked questions
Am I better off in 2026/27?
In England, Wales and Northern Ireland the tax rules are unchanged, so you are better off only if your pay rose, and if you repay a student loan you keep slightly more thanks to higher thresholds. In Scotland the higher starter and basic rate thresholds help many people.
Did the Personal Allowance change in 2026/27?
No. It remains £12,570, and the income tax bands in England, Wales and Northern Ireland are unchanged.
What changed for student loans?
Repayment thresholds rose for Plan 1, Plan 2 and Plan 4, and Plan 5 loans began repaying from April 2026.
What is fiscal drag?
It is the effect of tax thresholds being frozen while earnings rise, which pulls more income into higher tax bands.
More from UK Answers
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.