What Changed in Your Pay for 2026/27
Frozen thresholds, a new student loan plan in payroll for the first time, and sick pay rules that were rewritten in April.
Four things changed for 2026/27, and one of them is structural rather than a rate adjustment.
Income tax thresholds did not move, and will not until April 2031.
What did not change, which matters more
The Personal Allowance is still £12,570 and the higher rate threshold in England, Wales and Northern Ireland is still £50,270. Neither has moved since April 2021, and at the Autumn Budget in November 2025 the freeze was extended by a further three years to April 2031 - a full decade without an inflation adjustment.
That is the change with the largest cumulative effect and the one that never appears in a rate table, because nothing in the table changes. It shows up when your salary rises and a larger share of it falls into a higher band than it would have done under uprated thresholds. This guide puts a number on it, by salary.
The four changes
Statutory sick pay was rewritten. From 6 April 2026 there are no waiting days, no lower earnings limit condition, and low earners receive 80% of normal weekly earnings if that is less than the flat rate of £123.25. It brought roughly 1.3 million part-time and low-paid workers into the scheme for the first time.
Plan 5 student loans entered payroll. The first cohort reached their repayment due date on 6 April 2026. Plan 5 is also now the default plan applied when a new starter does not state one.
Scotland widened its lower bands again. The starter and basic ceilings were uprated, moving the break-even point with the rest of the UK up to about £33,000. The higher rate threshold stayed frozen at £43,663.
The threshold freeze was extended. At the Autumn Budget in November 2025 the Personal Allowance and higher rate threshold freeze was extended by three more years, to April 2031.
What it means for your pay
| Salary | 2024/25 | 2025/26 | 2026/27 | Change |
|---|---|---|---|---|
| £25,000 | £21,520 | £21,520 | £21,520 | £0 |
| £35,000 | £28,720 | £28,720 | £28,720 | £0 |
| £50,000 | £39,520 | £39,520 | £39,520 | £0 |
| £75,000 | £54,058 | £54,058 | £54,058 | £0 |
| £110,000 | £72,358 | £72,358 | £72,358 | £0 |
Questions people actually ask
Did tax rates change in 2026/27?
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Why does my take-home look the same as last year?
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The numbers this sits on
| Salary | Income tax | National Insurance | Take-home | A month | Effective rate |
|---|---|---|---|---|---|
| £25,000 | £2,486 | £994 | £21,520 | £1,793 | 13.9% |
| £35,000 | £4,486 | £1,794 | £28,720 | £2,393 | 17.9% |
| £45,000 | £6,486 | £2,594 | £35,920 | £2,993 | 20.2% |
| £60,000 | £11,432 | £3,210 | £45,358 | £3,780 | 24.4% |
| £85,000 | £21,432 | £3,710 | £59,858 | £4,988 | 29.6% |
| £110,000 | £33,432 | £4,210 | £72,358 | £6,030 | 34.2% |
Every figure in that table is computed from the published 2026/27 rates by the same engine that runs the calculators on this site, so a number in an article and a number in a calculator can never drift apart. National Insurance uses the statutory period thresholds real payroll uses, which is why these figures reconcile with a payslip rather than nearly reconciling with one.
| Salary | England, Wales, NI | Scotland | With a Plan 2 loan | Keep from the next £1,000 |
|---|---|---|---|---|
| £28,000 | 28.0% | 28.0% | 28.0% | £720.00 |
| £40,000 | 28.0% | 29.0% | 37.6% | £720.00 |
| £52,000 | 42.0% | 44.0% | 51.6% | £580.00 |
| £65,000 | 42.0% | 44.0% | 50.4% | £580.00 |
| £105,000 | 62.0% | 69.5% | 70.4% | £380.00 |
| £130,000 | 47.0% | 50.0% | 56.6% | £530.00 |
Work it out for yourself
- Take-home pay calculatorThe main calculator, all four UK nations.
- Pay rise calculatorWhat a raise really adds.
- Salary sacrificeWhat you are trading.
- Tax code checkerWhat each letter and prefix does.
Figures on this page are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were last checked on 29 August 2026. Every rate we use is listed on the sources page.