Compare Tax Years Calculator

Your Salary Details

Annual gross salary

£5,000 – £200,000

Year A

Year B

Scotland rates

Student loan

Pension contribution

% gross

For guidance only. Individual circumstances, tax codes and employer arrangements may affect actual deductions.

Enter your salary and click Compare Years to see your side-by-side breakdown.

Deduction	Year A	Year B	Difference
Income Tax	—	—	—
National Insurance	—	—	—
Student Loan	—	—	—
Pension	—	—	—
Total Deductions	—	—	—
Net Take-Home	—	—	—

How UK Tax Has Changed Year on Year

Understanding how the tax rules have shifted between 2022 and 2026 helps you see exactly why your take-home pay may have changed — even when your salary stayed the same.

2022/23

NI spike and mid-year U-turn

The Health and Social Care Levy temporarily raised employee NI rates to 13.25% (main) and 3.25% (upper). This was reversed partway through the year — making 2022/23 the most complex year for NI calculations.

2023/24

NI rates return to normal

The Levy was repealed and NI reverted to 12% main rate and 2% upper rate for the full year. The Personal Allowance remained frozen at £12,570 — beginning the real-terms pay cut that continues today.

2024/25

NI main rate cut to 10%

From January 2024 (part-way through the 2023/24 year) the main NI rate was cut to 10%, then further reduced to 8% from April 2024 for 2024/25. This delivered a meaningful take-home boost for most employees.

2025/26

NI holds at 8% — but employer costs rise

Employee NI stays at 8% for 2025/26. However, employer NI rose sharply to 15% (from 13.8%) on earnings above £5,000, potentially affecting pay growth and hiring. The Personal Allowance remains frozen at £12,570.

2022–2026

Personal Allowance freeze

The Personal Allowance has been frozen at £12,570 since 2021/22 and is legislated to stay there until at least 2027/28. With wage growth and inflation, more of your income falls into taxable bands each year — a hidden tax rise known as "fiscal drag".

Scotland

Diverging Scottish rates

Scotland has set its own income tax rates and bands since 2017. Scottish taxpayers now face up to six bands (19%–48%), with a starter rate of 19% but higher rates kicking in at lower thresholds than the rest of the UK — meaning many higher earners pay more.

Why does my take-home change between years?

Your gross salary might not change at all, yet your net pay still shifts between tax years. This is because governments adjust National Insurance rates, thresholds and personal allowances each April. The biggest driver in recent years has been NI rate changes — the swing from 12% to 13.25% in 2022/23 and back down to 8% by 2024/25 represents a significant difference at most salary levels.

What is "fiscal drag"?

Fiscal drag occurs when tax thresholds are frozen while wages rise. Even if the headline rates stay the same, a pay rise means more of your income falls into higher rate bands. With the Personal Allowance frozen at £12,570 and the Higher Rate threshold frozen at £50,270 since 2022, millions of taxpayers are gradually paying a larger share of their earnings in tax each year without any formal rate increase.

Worked Examples

These scenarios show the real-world pound impact of the NI rate changes between 2024/25 and 2025/26.

£35,000 — 2024/25 vs 2025/26

2024/25 NI (main rate 10%): £2,243

2025/26 NI (main rate 8%): £1,794

Income tax unchanged: £4,486 both years.

NI saving: £449/year (≈ £37/month)

£60,000 — comparing NI cuts across years

NI is capped at the Upper Earnings Limit (£50,270). On £60,000 the NI-able band is £37,700.

2024/25 NI: £37,700 × 10% + £9,730 × 2% = £3,965

2025/26 NI: £37,700 × 8% + £9,730 × 2% = £3,211

Saving: £754/year from NI rate cut

£100,000 — PA taper unchanged both years

At £100,000 the Personal Allowance begins to taper. Both 2024/25 and 2025/26 apply the same taper (PA reduced by £1 for every £2 over £100k).

Income tax is virtually identical both years — the only difference is the small NI saving from the rate cut on earnings up to £50,270.

NI saving: ~£754/year; income tax the same

2025/26 Tax Bands & NI Rates

The England and Wales rates used in this calculator for 2025/26 are shown below. Select "Scotland" in the calculator to apply Scottish rates.

Income Tax Band	Taxable Income	Rate
Personal Allowance	Up to £12,570	0%
Basic Rate	£12,571 – £50,270	20%
Higher Rate	£50,271 – £125,140	40%
Additional Rate	Over £125,140	45%

National Insurance (Employee) — 2025/26	Earnings	Rate
Below Primary Threshold	Up to £12,570	0%
Main Rate	£12,571 – £50,270	8%
Upper Rate	Over £50,270	2%

2024/25 main NI rate was 10%. 2023/24 main NI rate was 12%. 2022/23 saw a temporary 13.25% rate (Health and Social Care Levy).

Important Notes

Thresholds Frozen Until 2028 The Personal Allowance (£12,570) and higher rate threshold (£50,270) are frozen until at least 2028. As wages rise, more taxpayers are dragged into higher bands (fiscal drag) — a hidden tax rise even when headline rates stay the same.

Scottish Rates Change Annually Scotland sets its own income tax rates each year in the Scottish Budget. Scottish taxpayers currently pay rates ranging from 19% to 48% across six bands. Always check the latest rates on mygov.scot if you are a Scottish taxpayer — this calculator is updated each April.

April Payslip Can Look Wrong Your first payslip of the new tax year may look different as new rates and codes take effect. Allow 1–2 months for your employer's payroll to fully adjust. If your tax code changes, HMRC will write to you — always check the notice against your payslip.

Frequently Asked Questions

What changed in the 2025/26 tax year?

For employees, the main employee NI rate remained at 8% (unchanged from 2024/25). The Personal Allowance and higher-rate threshold stayed frozen at £12,570 and £50,270 respectively. The significant change was on the employer side — employer NI rose from 13.8% to 15% and the secondary threshold dropped from £9,100 to £5,000, increasing labour costs for businesses but not directly changing employee payslips.

Why are income tax thresholds frozen?

The government uses threshold freezes as a form of "fiscal drag" — a way to increase the tax take without raising headline rates. By keeping the Personal Allowance and higher-rate threshold fixed while wages rise, more income automatically falls into taxable bands each year. The freeze from 2021/22 is currently legislated to continue until at least 2027/28.

How much has the freeze cost a typical earner?

A £35,000 earner pays approximately £1,200 more in tax in 2025/26 than they would have paid if the Personal Allowance and higher-rate threshold had risen with CPI inflation since 2021/22. The effect grows with salary — a £55,000 earner can be paying over £2,000 more annually compared to an inflation-uprated system. This is the core of what economists call the fiscal drag impact.

What were the 2024/25 NI rates?

In 2024/25 the main employee NI rate was 10% — reduced from 12% in January 2024 (part-way through the 2023/24 tax year) and then further cut to 10% from April 2024. The upper rate remained at 2%. The Primary Threshold and Upper Earnings Limit were unchanged at £12,570 and £50,270 respectively.

Do Scottish tax changes affect me if I live near the border?

Only your place of residence determines which income tax rates apply — not where you work. If you live in England but commute across the border to work in Scotland, you pay England and Wales income tax rates. Conversely, if you live in Scotland and commute to England, Scottish rates apply. National Insurance is a UK-wide tax and is the same regardless of where you live or work in the UK.

When does the 2026/27 tax year start?

The 2026/27 tax year starts on 6 April 2026. The UK tax year always runs from 6 April to 5 April the following year — a quirk dating back to calendar reform in 1752. Key deadlines: P60s must be issued by 31 May, self-assessment returns are due by 31 January following the end of the tax year.