Tax ReceiptAutumn Budget 2026: what it means for your pay
The Budget has not been delivered yet. This page sets out what is already fixed for 2026/27 and beyond, and what the changes people are talking about would be worth at your salary. It will be updated with the announcements on Budget day.
What is already set
- Income tax and National Insurance thresholds are frozen until April 2031. The Personal Allowance stays at £12,570 and the higher-rate threshold at £50,270, as they have been since 2021/22. The November 2025 Budget added three years to the freeze.
- Rates for 2026/27 in England, Wales and Northern Ireland: 20% income tax up to £50,270, 40% up to £125,140 and 45% above; employee National Insurance of 8% between £12,570 and £50,270 and 2% above. Scotland sets its own income tax bands.
- Student loans: the Plan 2 repayment threshold stays at its 2026/27 level, £29,385, for three years from April 2027. See repayments by salary.
- Savings, dividends and property: dividend tax rates rose by 2 points in April 2026; tax on savings and property income rises by 2 points from April 2027.
- Pension salary sacrifice: from 2029, only the first £2,000 a year sacrificed will be free of National Insurance.
What a change would be worth at your salary
These are illustrations, not predictions: the yearly difference to an employee in England, Wales or Northern Ireland under 2026/27 rules.
| Salary | Take-home now | Personal Allowance up £1,000 | Employee NI cut by 1 point | Cost of the freeze |
|---|---|---|---|---|
| £15,000 | £14,320 | £200 | £24 | £486 |
| £20,000 | £17,920 | £200 | £74 | £654 |
| £25,000 | £21,520 | £200 | £124 | £654 |
| £30,000 | £25,120 | £200 | £174 | £654 |
| £35,000 | £28,720 | £200 | £224 | £654 |
| £40,000 | £32,320 | £200 | £274 | £654 |
| £45,000 | £35,920 | £200 | £324 | £654 |
| £50,000 | £39,520 | £200 | £374 | £654 |
| £60,000 | £45,357 | £200 | £377 | £2,600 |
| £70,000 | £51,157 | £200 | £377 | £3,268 |
| £80,000 | £56,957 | £200 | £377 | £3,268 |
| £100,000 | £68,557 | £200 | £377 | £3,268 |
Personal Allowance up £1,000: income tax saved if the allowance rose to £13,570 with the higher-rate threshold unchanged. NI cut: 7% instead of 8% between £12,570 and £50,270. Cost of the freeze: the extra income tax paid in 2026/27 because the Personal Allowance and higher-rate threshold were not raised with CPI inflation (26%) from their 2021/22 levels, which would have made them about £15,840 and £63,340. National Insurance is left out of that column because its thresholds were set differently before 2022.
Where your tax goes now
On £35,000, you pay £4,486 income tax and £1,794 National Insurance in 2026/27. The calculator splits your bill across public services, from health and pensions to defence and debt interest. To see how today's rules compare with every year since 1976/77, in today's money, see your tax since 1976.
Frequently asked questions
When is the Autumn Budget 2026?
Wednesday 28 October 2026. The Chancellor, John Healey, confirmed the date on 31 July 2026. The statement usually starts after Prime Minister's Questions, at about 12:30pm, and the Office for Budget Responsibility publishes its forecast the same day.
Are income tax thresholds frozen?
Yes. The Personal Allowance (£12,570), the higher-rate threshold (£50,270) and the additional-rate threshold (£125,140) have been frozen since 2021/22, and the November 2025 Budget extended the freeze, with the matching employee National Insurance thresholds, until April 2031.
Will the Personal Allowance go up?
Nothing has been announced. A £1,000 rise would save a basic-rate taxpayer £200 a year in income tax. The table on this page shows what it would be worth at each salary.
What is fiscal drag?
When tax thresholds stay frozen while pay rises with inflation, more of your income is taxed, and more people move into higher bands, without any rate going up. Prices have risen about 26% since 2021/22; had the thresholds kept pace, someone on £35,000 would pay about £654 less income tax this year.
What changes to my pay are already set?
From April 2027 the Plan 2 student loan threshold is frozen for three years, and the tax rates on savings and property income rise by 2 points. From 2029, pension salary sacrifice above £2,000 a year will no longer be free of National Insurance.
Sources
- HM Treasury, Chancellor's letter to the Treasury Committee on the Budget 2026 date (31 July 2026)
- HM Treasury, Budget 2025 (threshold freeze, Plan 2 threshold, savings, dividend and property rates, salary sacrifice)
- GOV.UK, Income Tax rates and Personal Allowances
- HMRC, Rates and allowances: National Insurance contributions
- ONS, Consumer Prices Index (D7BT), averaged over each tax year as on the history page