UK Compare Tax Years Calculator
Compare Tax Years
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Compare how your salary differs between tax years
The Compare Tax Years Calculator shows the difference in take-home pay for the same salary across two different UK tax years. Select two years, enter your salary, and see exactly how your net pay has changed — useful for understanding the impact of Budget announcements or tracking the effect of frozen thresholds over time.
UK income tax thresholds have been frozen since April 2022. The personal allowance remains at £12,570 and the higher rate threshold at £50,270 for 2026/27. With wage growth above these frozen thresholds, more of every pay rise is absorbed by tax — a process known as fiscal drag. An employee earning £45,000 in 2022/23 who receives annual 5% pay rises will, by 2026/27, be paying a meaningfully higher effective tax rate despite no change in headline rates.
National Insurance rates have changed between years: the main employee NI rate was 12% until November 2022, then reduced to 10% in January 2024 and again to 8% in April 2024, where it remains for 2026/27. This calculator reflects the correct rates for each selected year so the comparison is accurate.
The main income tax thresholds are frozen in both years: personal allowance at £12,570, the basic rate threshold at £50,270, and the higher rate threshold at £125,140. These have been frozen since April 2022 and are due to remain frozen until at least 2028, pulling more people into higher tax bands as wages rise.
National Insurance rates, student loan thresholds, and the statutory pay rates can change annually. For example, the main employee NI rate was reduced from 10% to 8% in January 2024, increasing take-home pay for most workers.
The main employee National Insurance rate remained at 8% throughout 2026/27, unchanged from the rate set in January 2024. The thresholds (£12,570 lower, £50,270 upper) are also frozen for 2026/27.
Fiscal drag occurs when tax thresholds are frozen while wages rise with inflation. If your salary increases by 3% but the basic rate threshold stays the same, more of your income falls into higher tax bands and your effective tax rate increases — even though the headline tax rates are unchanged.