{ "@context": "https://schema.org", "@type": "Dataset", "@id": "https://uktaxdrag.co.uk/uk-fiscal-drag-tracker-2026-27.html#dataset", "name": "UK Fiscal Drag Tracker 2026/27", "description": "Annual dataset measuring the cumulative effect of frozen UK tax thresholds since April 2021. Tracks Personal Allowance, higher-rate threshold, additional-rate threshold, HICBC threshold, CGT and dividend allowance changes, vs nominal wage growth and CPI inflation. Methodology: counterfactual CPI indexation of 2020/21 thresholds compared to actual frozen thresholds.", "version": "1.0", "datePublished": "2026-05-12", "dateModified": "2026-05-12", "license": "https://creativecommons.org/licenses/by/4.0/", "creator": { "@type": "Organization", "name": "UK Tax Drag", "url": "https://uktaxdrag.co.uk/" }, "publisher": { "@type": "Organization", "name": "UK Tax Drag", "url": "https://uktaxdrag.co.uk/" }, "inLanguage": "en-GB", "spatialCoverage": { "@type": "Place", "name": "United Kingdom" }, "temporalCoverage": "2020-04-06/2026-04-05", "keywords": [ "UK tax thresholds", "fiscal drag", "frozen thresholds", "Personal Allowance", "higher rate threshold", "stealth tax", "60% trap", "HICBC" ], "citation": "UK Tax Drag (2026), 'UK Fiscal Drag Tracker 2026/27', https://uktaxdrag.co.uk/uk-fiscal-drag-tracker-2026-27.html", "thresholds": [ { "tax_year": "2020/21", "personal_allowance": 12500, "higher_rate_threshold_england_ni_wales": 50000, "additional_rate_threshold": 150000, "hicbc_threshold": 50000, "cgt_allowance": 12300, "dividend_allowance": 2000, "ni_class1_upper_earnings_limit": 50000, "uk_avg_full_time_salary_estimate_gbp": 31461, "cpi_index_april_2020_baseline": 100.0 }, { "tax_year": "2021/22", "personal_allowance": 12570, "higher_rate_threshold_england_ni_wales": 50270, "additional_rate_threshold": 150000, "hicbc_threshold": 50000, "cgt_allowance": 12300, "dividend_allowance": 2000, "ni_class1_upper_earnings_limit": 50270, "uk_avg_full_time_salary_estimate_gbp": 32700, "cpi_index_april_2020_baseline": 101.5 }, { "tax_year": "2022/23", "personal_allowance": 12570, "higher_rate_threshold_england_ni_wales": 50270, "additional_rate_threshold": 150000, "hicbc_threshold": 50000, "cgt_allowance": 12300, "dividend_allowance": 2000, "ni_class1_upper_earnings_limit": 50270, "uk_avg_full_time_salary_estimate_gbp": 34300, "cpi_index_april_2020_baseline": 110.7 }, { "tax_year": "2023/24", "personal_allowance": 12570, "higher_rate_threshold_england_ni_wales": 50270, "additional_rate_threshold": 125140, "hicbc_threshold": 50000, "cgt_allowance": 6000, "dividend_allowance": 1000, "ni_class1_upper_earnings_limit": 50270, "uk_avg_full_time_salary_estimate_gbp": 36100, "cpi_index_april_2020_baseline": 119.3 }, { "tax_year": "2024/25", "personal_allowance": 12570, "higher_rate_threshold_england_ni_wales": 50270, "additional_rate_threshold": 125140, "hicbc_threshold": 60000, "cgt_allowance": 3000, "dividend_allowance": 500, "ni_class1_upper_earnings_limit": 50270, "uk_avg_full_time_salary_estimate_gbp": 37400, "cpi_index_april_2020_baseline": 122.0 }, { "tax_year": "2025/26", "personal_allowance": 12570, "higher_rate_threshold_england_ni_wales": 50270, "additional_rate_threshold": 125140, "hicbc_threshold": 60000, "cgt_allowance": 3000, "dividend_allowance": 500, "ni_class1_upper_earnings_limit": 50270, "uk_avg_full_time_salary_estimate_gbp": 38100, "cpi_index_april_2020_baseline": 122.8 }, { "tax_year": "2026/27", "personal_allowance": 12570, "higher_rate_threshold_england_ni_wales": 50270, "additional_rate_threshold": 125140, "hicbc_threshold": 60000, "cgt_allowance": 3000, "dividend_allowance": 500, "ni_class1_upper_earnings_limit": 50270, "uk_avg_full_time_salary_estimate_gbp": 38400, "cpi_index_april_2020_baseline": 123.4 } ], "higher_rate_taxpayer_counts": [ {"tax_year": "2020/21", "count_millions": 4.4, "share_of_taxpayers_pct": 13}, {"tax_year": "2021/22", "count_millions": 4.9, "share_of_taxpayers_pct": 15}, {"tax_year": "2022/23", "count_millions": 5.6, "share_of_taxpayers_pct": 17}, {"tax_year": "2023/24", "count_millions": 6.5, "share_of_taxpayers_pct": 20}, {"tax_year": "2024/25", "count_millions": 7.1, "share_of_taxpayers_pct": 21}, {"tax_year": "2025/26", "count_millions": 7.5, "share_of_taxpayers_pct": 22}, {"tax_year": "2026/27", "count_millions": 7.8, "share_of_taxpayers_pct": 23} ], "drag_loss_by_salary": [ {"salary_2020_gbp": 25000, "projected_salary_2026_gbp": 30500, "annual_drag_loss_2026_gbp": 402, "cumulative_drag_loss_2021_2026_gbp": 1510}, {"salary_2020_gbp": 30000, "projected_salary_2026_gbp": 36600, "annual_drag_loss_2026_gbp": 612, "cumulative_drag_loss_2021_2026_gbp": 2304}, {"salary_2020_gbp": 40000, "projected_salary_2026_gbp": 48800, "annual_drag_loss_2026_gbp": 1180, "cumulative_drag_loss_2021_2026_gbp": 4443}, {"salary_2020_gbp": 50000, "projected_salary_2026_gbp": 61000, "annual_drag_loss_2026_gbp": 2856, "cumulative_drag_loss_2021_2026_gbp": 10737}, {"salary_2020_gbp": 75000, "projected_salary_2026_gbp": 91500, "annual_drag_loss_2026_gbp": 3140, "cumulative_drag_loss_2021_2026_gbp": 11815}, {"salary_2020_gbp": 100000, "projected_salary_2026_gbp": 122000, "annual_drag_loss_2026_gbp": 4402, "cumulative_drag_loss_2021_2026_gbp": 16564} ], "sources": [ {"name": "HMRC published tax bands 2020/21 through 2026/27", "url": "https://www.gov.uk/income-tax-rates"}, {"name": "ONS Average Weekly Earnings series", "url": "https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/timeseries/kab9/lms"}, {"name": "ONS CPI series", "url": "https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7g7/mm23"}, {"name": "HMRC Personal Income Statistics", "url": "https://www.gov.uk/government/collections/personal-incomes-statistics"}, {"name": "OBR Economic and Fiscal Outlook (March 2025)", "url": "https://obr.uk/efo/economic-and-fiscal-outlook-march-2025/"} ], "methodology_url": "https://uktaxdrag.co.uk/methodology.html", "page_url": "https://uktaxdrag.co.uk/uk-fiscal-drag-tracker-2026-27.html" }