Autumn Budget 2026 at a glance
Budget day
28 October 2026
Changes usually apply from 6 April 2027
Tax thresholds
Frozen to 2031
£12,570 and £50,270, as the law stands
Allowance to £15,570
+£840/yr
For most employees, if it happens
The short answer: the Autumn Budget is on Wednesday 28 October 2026, and unless it changes the current law, your 2027/28 take-home at the same salary will be exactly what it is today. The £12,570 Personal Allowance and £50,270 higher-rate threshold are frozen until April 2031, and National Insurance thresholds are frozen with them.
Rises in the rates of income tax, employee NI and VAT are ruled out, so the debate is about thresholds. The Chancellor is reported to be weighing a Personal Allowance of up to £15,570, which would be worth £840 a year to most employees (£280 for every £1,000). Nothing is announced, so use the calculator below to test it on your own pay.
Autumn Budget calculator: test the options on your salary
The freeze is the baseline, because it is current law. Change a threshold or the NI rate and the calculator shows your 2027/28 take-home under that Budget against the freeze.
Start from a scenario
Personal Allowance
Higher-rate threshold
Employee NI main rate
2027/28 with the freeze
£35,920
£2,993 a month
2027/28, this scenario
£36,760
£3,063 a month
Difference
+£840
+£70 a month
| Annual | Freeze | This scenario |
|---|---|---|
| Personal Allowance | £12,570 | £15,570 |
| Income tax | £6,486 | £5,886 |
| National Insurance | £2,594 | £2,354 |
| Take-home pay | £35,920 | £36,760 |
England, Wales and Northern Ireland rates for an employee, with no pension, student loan or benefits. NI thresholds move with the income tax thresholds, as the current freeze legislates. Every option other than the freeze is PayMetric Labs' own what-if, not an announced measure.
What's already decided for April 2027
Most of what changes next April was announced in Budget 2025, and it mainly affects income other than salary. Checked 4 October 2026.
| Measure | Detail | Status |
|---|---|---|
| Budget day | Wednesday 28 October 2026, Chancellor John Healey's first Budget | Confirmed |
| Income tax and NI thresholds | £12,570 allowance and £50,270 higher-rate threshold frozen to 5 April 2031 | Already law |
| Income tax, employee NI and VAT rates | The Prime Minister has confirmed Labour's 2024 manifesto pledge not to raise them | Ruled out |
| Personal Allowance | The Chancellor is reported to be considering a rise to as much as £15,570 (City AM, 24 September) | Reported |
| Savings income | Tax rates up 2 points from April 2027, to 22%, 42% and 47% | Already announced |
| Property income | Separate rates of 22%, 42% and 47% from April 2027 | Already announced |
| Dividends | Basic and higher rates rose 2 points in April 2026, to 10.75% and 35.75% | In force |
| Plan 2 student loans | Repayment threshold held at £29,385 for three years from April 2027 | Already announced |
| Pension salary sacrifice | NI relief capped at £2,000 a year from 6 April 2029 | Already announced |
On a student loan? See what each plan costs in student loan take-home 2026. Using salary sacrifice? The EV vs pension salary sacrifice calculator shows what the scheme saves you now.
Three possible Budget moves at seven salaries
Annual change in 2027/28 take-home against the freeze. Both allowance options hold the higher-rate threshold at £50,270; the last column lifts both thresholds by 3%.
| Gross salary | Net, freeze | Allowance up £1,000 | Allowance to £15,570 | Both thresholds up 3% |
|---|---|---|---|---|
| £25,000 | £21,520 | +£280 | +£840 | +£106 |
| £30,000 | £25,120 | +£280 | +£840 | +£106 |
| £45,000 | £35,920 | +£280 | +£840 | +£106 |
| £60,000 | £45,357 | +£280 | +£840 | +£317 |
| £80,000 | £56,957 | +£280 | +£840 | +£317 |
| £110,000 | £72,357 | +£280 | +£840 | +£317 |
| £150,000 | £91,286 | -£120 | -£360 | +£166 |
PayMetric Labs' own modelled estimate of possible measures, not announced policy. For today's exact figures, use the UK take-home pay calculator.
How an allowance rise reaches your pay
Every £1,000 of allowance takes £1,000 out of both income tax at 20% and NI at 8%, so it's a flat £280 for almost every employee, provided the NI primary threshold moves with it, as it has since 2022. If the Treasury holds the higher-rate threshold at £50,270 to limit the cost, the 20% band gets narrower. Most higher-rate taxpayers don't notice, because their allowance rises by the same amount.
Above £100,000 it gets complicated. You lose £1 of allowance for every £2 earned over £100,000, and a bigger allowance takes longer to lose: at £15,570, it would run out at £131,140 instead of £125,140. So the 60% band gets wider. Once the allowance has gone, all that's left is the narrower 20% band, which is why the top row shows a loss.
Indexation is what would have happened without the freeze. It's worth more to higher-rate payers (£317 against £106 on a 3% rise), because a higher £50,270 line moves income from 40% to 20%. That's the same effect our fiscal drag guide describes in reverse.
Close to £100,000? Watch the taper, not the headline rates
Between £100,000 and £125,140 you lose £1 of allowance for every £2 you earn, so the marginal rate is 62% with NI. None of the options above changes the £100,000 taper point, and with the freeze in place, more people cross it each year. A pension contribution that brings your adjusted net income back under £100,000 is still the most valuable move on the table. See the 60% tax trap guide.
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Frequently asked questions
When is the Autumn Budget 2026?
The Chancellor, John Healey, delivers the Autumn Budget on Wednesday 28 October 2026, after Prime Minister's Questions. Income tax and National Insurance changes announced then normally take effect from 6 April 2027, the start of the 2027/28 tax year.
Are income tax thresholds still frozen?
Yes, as the law stands. Budget 2025 extended the freeze on the £12,570 Personal Allowance and the £50,270 higher-rate threshold to 5 April 2031, and the National Insurance thresholds stay aligned with them. Unless this Budget changes that, 2027/28 take-home at a given salary will be exactly the same as 2026/27, so any pay rise is taxed with no threshold relief. Our fiscal drag guide explains what that costs.
Could income tax or National Insurance rates go up?
Not the main ones. Andy Burnham has confirmed the government will keep Labour's 2024 manifesto pledge not to raise the rates of income tax, employee National Insurance or VAT. That leaves thresholds, allowances and taxes on wealth, property and savings as the levers.
What would a £1,000 rise in the Personal Allowance be worth?
£280 a year for most employees: £200 less income tax and £80 less National Insurance, assuming the NI threshold moves with it. If the higher-rate threshold stays at £50,270, higher-rate taxpayers get the same. Once the allowance is fully tapered away (from about £125,140), it would cost £120, because the 20% band would be £1,000 narrower.
What would a £15,570 Personal Allowance be worth?
£840 a year for most employees, with the higher-rate threshold held at £50,270 and the NI threshold following the allowance. It would also stretch the taper: the allowance would only run out at £131,140, so the 60% marginal rate band would get wider. Above that, a narrower 20% band would cost about £360 a year.
Is anything already changing in April 2027?
Yes, but mostly outside salaries. Tax on savings interest rises by 2 points, property income gets its own 22%, 42% and 47% rates, and the Plan 2 student loan threshold stays at £29,385. For employees paid only a salary, the freeze means April 2027 brings no change to income tax or NI unless this Budget makes one.
What happens to the minimum wage?
The April 2027 National Living Wage is normally announced on Budget day or the day before. The Low Pay Commission's central estimate is £13.18 an hour, up from £12.71. Our National Living Wage 2027 guide has the full detail and a pay calculator.