Budget 2026: what changed
Announced on 28 October 2026. Most measures start on 6 April 2027; the status column says which are still to be legislated.
Pay. Income tax rates, the personal allowance and the thresholds are unchanged for 2027/28, so take-home from a salary alone does not move on 6 April 2027. Savings and property. Interest above the personal savings allowance and rental income are taxed at 24%, 44% and 49% from 6 April 2027, four points above the main rates. Allowances and benefits. The trading allowance rises to £3,000, a Pension Tax Allowance of up to £94 begins for people over State Pension age, and the Lifetime ISA charge on a first home over the price cap fell to 20% on 29 October 2026.
Measures
| Measure | Before | After | Effective | Status | Tool |
|---|---|---|---|---|---|
| Savings income rates | 20%, 40%, 45% | 24%, 44%, 49% | 6 April 2027 | announced | Savings tax |
| Property income rates (England, Wales and Northern Ireland) | Main rates | 24%, 44%, 49% | 6 April 2027 | announced | Landlord tax |
| Trading allowance | £1,000 | £3,000 | 6 April 2027 | announced | Side hustle tax |
| Pension Tax Allowance | None | Up to £94 for people over State Pension age with income up to £13,036.40 | 6 April 2027 | announced | State Pension tax |
| Mileage rate above 10,000 miles | 25p | 35p | 6 April 2027 | announced | Mileage allowance (coming) |
| Lifetime ISA charge on a first home over £450,000 | 25% | 20% | 29 October 2026 | in-force | Lifetime ISA penalty |
| National Insurance lower earnings limit | £6,708 | £6,916 | 6 April 2027 | announced | Take-home pay (no effect on deductions) |
Worked examples
Take-home from a salary in England and Northern Ireland, standard tax code, no pension or student loan, under 2026/27 and under 2027/28 as announced so far.
| Salary | 2026/27 | 2027/28 | Difference |
|---|---|---|---|
| £30,000 | £25,120 | £25,120 | None |
| £50,000 | £39,520 | £39,520 | None |
| £80,000 | £56,957 | £56,957 | None |
The differences are nil because every figure that touches a salary is frozen. Anyone with savings interest above their allowance, rental income or a trade will see a change: the savings, landlord and side hustle tools show the same inputs under both years, and the State Pension tool shows what the Pension Tax Allowance removes.
What has not changed
- Personal allowance £12,570, basic rate limit £37,700, higher rate threshold £50,270 and additional rate threshold £125,140, all held until April 2031.
- National Insurance primary threshold £12,570 and upper earnings limit £50,270, held to the same date; the main rates stay at 8% and 2%.
- The personal savings allowance, the starting rate for savings, the dividend allowance and the dividend rates.
- The cash ISA limit, which stays at £20,000 after a planned reduction was dropped.
Every value that differs between the two years
- incomeTax.savings.rates.basic: 20% to 24% (announced)
- incomeTax.savings.rates.higher: 40% to 44% (announced)
- incomeTax.savings.rates.additional: 45% to 49% (announced)
- incomeTax.property.rates.basic: 20% to 24% (announced)
- incomeTax.property.rates.higher: 40% to 44% (announced)
- incomeTax.property.rates.additional: 45% to 49% (announced)
- incomeTax.tradingAllowance: £1,000 to £3,000 (announced)
- nationalInsurance.employee.lowerEarningsLimit: £6,708 to £6,916 (announced)
- nationalInsurance.selfEmployed.class2Weekly: £4 to £4 (announced)
- nationalInsurance.selfEmployed.smallProfitsThreshold: £7,105 to £7,355 (announced)
- mileage.carAfterRate: 25% to 35% (announced)
- isa.cashLimit: not set to £20,000 (announced)
- pensionTaxAllowance: not set to [object Object] (unset)
- statePension.fullNewWeekly: £241 to £251 (announced)
Sources
- https://www.gov.uk/government/publications/income-tax-changes-to-tax-rates-for-property-and-savings-income/income-tax-changes-to-tax-rates-for-property-and-savings-income
- https://www.gov.uk/government/publications/income-tax-increasing-the-trading-allowance/increasing-the-trading-allowance
- https://www.gov.uk/government/publications/budget-2026-overview-of-tax-legislation-and-rates-ootlar/budget-2026-overview-of-tax-legislation-and-rates-ootlar
- https://www.gov.uk/government/publications/budget-2026-overview-of-tax-legislation-and-rates-ootlar/annex-a-rates-and-allowances
- https://www.gov.uk/government/publications/tax-free-savings-newsletter-24/tax-free-savings-newsletter-24-october-2026
- https://www.gov.uk/government/publications/pension-tax-allowance-explainer/pension-tax-allowance-explainer
Full tables for each year: rates 2026/27 and rates 2027/28. Scottish income tax for 2027/28 is set by the Scottish Budget on 3 December 2026 and is shown as not set until then.