Every April the new tax year brings a fresh set of thresholds and rates. Some change, many are frozen, and the overall effect on your take-home pay depends on where you live and how you are paid. This article summarises the figures that apply from 6 April 2026 to 5 April 2027, all taken from official GOV.UK and HMRC publications.
Income Tax: thresholds frozen
In England, Wales and Northern Ireland, the Personal Allowance remains £12,570 and the basic-rate band runs to £50,270, with 40% above that and 45% over £125,140 (GOV.UK Income Tax rates). Because thresholds are frozen while wages generally rise, more people move into higher bands over time – a process often called “fiscal drag”. In practice, even a pay rise that only matches inflation can raise your average tax rate.
Scotland: updated bands
Scottish taxpayers have six bands in 2026/27: starter 19% (£12,571–£16,537), basic 20% (to £29,526), intermediate 21% (to £43,662), higher 42% (to £75,000), advanced 45% (to £125,140) and top 48% above that (GOV.UK Scottish Income Tax). Lower earners in Scotland can pay slightly less than elsewhere in the UK, while higher earners pay more.
National Insurance
For employees, Class 1 National Insurance remains 8% on earnings between the Primary Threshold (£12,570 a year; £242 a week) and the Upper Earnings Limit (£50,270; £967 a week), and 2% above that. Employers pay 15% above a Secondary Threshold of £5,000 a year (£96 a week). Self-employed people pay Class 4 at 6% on profits between £12,570 and £50,270, and 2% above (HMRC rates and allowances). Voluntary Class 3 contributions are £18.40 a week.
Student loans
Repayment thresholds for 2026/27 are £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4), £25,000 (Plan 5) and £21,000 (Postgraduate Loan) (GOV.UK). Repayments are 9% of income above the threshold, or 6% for postgraduate loans.
State Pension
The full new State Pension rose to £241.30 a week from April 2026. The State Pension age begins rising from 66 to 67 for people born on or after 6 April 1960.
What this means for your pay
With frozen Income Tax and NI thresholds, most employees' take-home pay changes in line with their gross pay, but a growing share of each pay rise can go in tax as people cross thresholds. The quickest way to see your own position is our Take-Home Pay Calculator, which applies all of the figures above.
Actions to consider this tax year
- Check your tax code on your payslip or HMRC app – errors are common after job changes.
- Review pension contributions, especially if you are near £50,270 or £100,000, where extra contributions can reduce tax at 40% or more.
- Use your ISA allowance to shelter savings interest from tax.
- Claim Marriage Allowance if one partner earns under the Personal Allowance and the other is a basic-rate taxpayer.
- Check whether you need to file a Self Assessment return – the deadline for online returns is 31 January after the end of the tax year.
This summary covers common situations for individuals and is not exhaustive. Always check GOV.UK for the latest announcements.
