UK Budget 2026: what it means for your take-home pay
The Chancellor delivers the Budget on Wednesday 28 October 2026. Here is what is already fixed for the next few years, and what the changes people are talking about would mean for your pay.
Status: the Budget has not been delivered yet. We will update this page with the official figures from GOV.UK on Budget day, and add any announced 2027/28 rates to the calculator as a preview.
Source: HM Treasury, Chancellor letter to the Treasury Select Committee: Budget 2026 date (31 July 2026)
Already announced, before this Budget
- Thresholds frozen until 5 April 2031. The personal allowance stays at £12,570 and the higher-rate threshold at £50,270. National Insurance follows: you start paying at £12,570 and the 2% rate starts at £50,270. As pay rises with inflation, more of it is taxed (“fiscal drag”).
- Plan 2 student loans. The repayment threshold stays at £29,385 for three years from April 2027, so you repay 9% of everything above it.
- Pension salary sacrifice, from 6 April 2029. Only the first £2,000 a year sacrificed into a pension will be free of National Insurance. Above that, it is charged like other pay. Sacrificing £5,000 a year would mean NI on £3,000: about £240 a year at the 8% rate, or £60 if your pay is above £50,270. Income tax relief is unchanged.
Source: HMRC, Maintaining Income Tax and equivalent National Insurance thresholds until 5 April 2031
Source: HM Treasury, Budget 2025 (Plan 2 threshold)
Source: HMRC, Changes to salary sacrifice for pensions from April 2029
What a change would mean for you
These are illustrations, not predictions. Each column changes one thing in the 2026/27 rules and reruns our calculator (England, tax code 1257L, no student loan or pension). The figures show how much more or less you would take home in a year.
| Salary | Take-home now | Basic rate 21% (+1p) | Employee NI 9% (+1p) | Personal allowance £13,570 |
|---|---|---|---|---|
| £20,000 | £17,922 | −£74 | −£74 | +£200 |
| £30,000 | £25,122 | −£174 | −£174 | +£200 |
| £40,000 | £32,322 | −£274 | −£274 | +£200 |
| £50,000 | £39,522 | −£374 | −£374 | +£200 |
| £60,000 | £45,362 | −£377 | −£377 | +£400 |
| £80,000 | £56,962 | −£377 | −£377 | +£400 |
| £100,000 | £68,562 | −£377 | −£377 | +£400 |
| £150,000 | £91,287 | −£377 | −£377 | £0 |
A higher personal allowance also raises the higher-rate threshold by the same amount, as the basic-rate band sits on top of it. It is withdrawn above £100,000 as now, so it is worth nothing at £150,000. National Insurance thresholds are left as they are.
Scotland
Scottish income tax bands and rates are set by the Scottish Parliament in the Scottish Budget, not on 28 October. Changes to National Insurance and student loans would still apply. See the Scotland calculator.
The rates today
For the full 2026/27 figures see tax bands, National Insurance and student loans. Every change we make after the Budget is listed in the changelog.
Rates checked 19 October 2026 against HMRC for the 2026/27 tax year (6 April 2026 – 5 April 2027). How we calculate · Sources · Accuracy tests · Report an error
Estimate for information only, based on United Kingdom 2026/27 rates. Not tax or financial advice. Your payslip may differ (for example tax code, benefits or other deductions).