This page is the practical version of the annual update. It focuses on the thresholds, rates, and frozen bands that are most likely to change real behaviour in 2026/27 rather than the items that are technically new but low-impact for most households.
The biggest story is not a dramatic new headline rate. It is the combination of frozen income tax thresholds, a higher employer NI environment, and new 2026/27 dividend tax rates. For a lot of people, this means the tax year feels harsher without looking radically different at first glance.
The Personal Allowance stays at £12,570, the basic-rate limit stays at £50,270, and the Personal Allowance taper still begins at £100,000. Wage growth therefore keeps pushing more income into higher bands.
From 6 April 2026, dividend tax above the £500 allowance is 10.75% in the basic-rate band, 35.75% in the higher-rate band, and 39.35% in the additional-rate band.
Employee Class 1 rates stay at 8% and 2%, but employer NI remains 15% above the secondary threshold. That keeps salary sacrifice relevant because it cuts both tax and payroll friction.
The annual pension allowance remains £60,000, the tapered allowance rules still pivot around £260,000, and the VAT registration threshold remains £90,000.