· 3 min read
Every tax change that hit your payslip in April 2026
Frozen thresholds, new Scottish bands, higher student loan thresholds, dividend tax up 2 points and more. Every April 2026 change and what it means for pay.
The 2026/27 tax year started on 6 April 2026. Some changes show up on every payslip and some only touch particular groups. Here is the full list, with the numbers.
Thresholds frozen until 2031
The Personal Allowance stays at £12,570 and the higher rate threshold at £50,270. The Budget 2025 extended the freeze to April 2031. National Insurance thresholds are frozen too: employees pay 8% between £12,570 and £50,270 and 2% above.
For someone in England on the same salary as last year, nothing moved. A £30,000 salary takes home £25,120.08 in both 2025/26 and 2026/27, and £50,000 takes home £39,520.12 in both.
The catch is that pay rises are taxed against the same thresholds, so a growing share of income falls into higher bands each year.
Scotland: a small cut for most
The Scottish starter and basic rate thresholds rose by 7.4%. The starter rate now covers income up to £16,537 and the basic rate up to £29,526. Higher bands did not change.
| Scottish salary | Income tax 2025/26 | Income tax 2026/27 |
|---|---|---|
| £20,000 | £1,457.73 | £1,446.33 |
| £30,000 | £3,482.82 | £3,451.07 |
| £50,000 | £9,013.80 | £8,982.05 |
Student loan thresholds
| Plan | 2025/26 | 2026/27 |
|---|---|---|
| Plan 1 | £26,065 | £26,900 |
| Plan 2 | £28,470 | £29,385 |
| Plan 4 (Scotland) | £32,745 | £33,795 |
| Plan 5 | £25,000 | £25,000 |
| Postgraduate | £21,000 | £21,000 |
On a £40,000 salary, Plan 2 repayments fall from £1,032 to £948 a year. Plan 5 borrowers, who started courses from August 2023, begin repaying from April 2026 if they earn over £25,000. According to the Budget announcements, the Plan 2 threshold will then be held at £29,385 from 2027/28 to 2029/30.
Dividend tax up 2 points
The ordinary and upper dividend rates rose to 10.75% and 35.75%. The additional rate stays at 39.35% and the dividend allowance at £500.
Electric company cars
The benefit-in-kind rate for fully electric cars went from 3% to 4%. It rises to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
Working from home relief ended
The flat £6 a week tax relief for working from home was removed from 6 April 2026 for costs your employer does not reimburse. That is worth £62 a year to a basic rate taxpayer and £124 to a higher rate taxpayer. At the same time, eye tests, home working equipment and flu jabs reimbursed by your employer became exempt from tax and NI.
Minimum wage and State Pension
| Item | April 2025 | April 2026 |
|---|---|---|
| National Living Wage (21 and over) | £12.21 | £12.71 |
| Minimum wage, 18 to 20 | £10.00 | £10.85 |
| Full new State Pension (weekly) | £230.25 | £241.30 |
The full new State Pension is now £12,547.60 a year, just below the £12,570 Personal Allowance.
Families
Child Benefit is now £27.05 a week for the eldest child and £17.90 for each other child. The High Income Child Benefit Charge still starts at £60,000 of adjusted net income and takes all of it back at £80,000. Blind Person's Allowance is £3,250.
Making Tax Digital
From 6 April 2026, sole traders and landlords with more than £50,000 of gross income must keep digital records and send quarterly updates. The £30,000 group follows in April 2027.
What to do now
- Check your tax code. The standard code is still 1257L, with S for Scotland and C for Wales.
- If you claimed the £6 a week working from home relief, expect your tax code to change.
- Put your 2026/27 figures into our calculator to see each deduction, and compare with your April payslip.
- Student loan borrowers on Plan 5 should check that repayments have started correctly.