Key changes to income tax, National Insurance, dividends, stamp duty, pensions, and Child Benefit for the 2026/27 tax year (6 April 2026 – 5 April 2027). All Sterling Calculators are updated to reflect these rates.
Unchanged from 2025/26. The freeze (originally announced in 2021) continues — in real terms, this means more income becomes taxable each year as wages rise.
Unchanged. Higher rate (40%) kicks in above £50,270 of taxable income. Frozen until at least 2028.
45% rate on income above £125,140. Personal Allowance is fully withdrawn at this point.
The trap zone (£100,000–£125,140) continues with an effective marginal rate of ~60%. No change.
Employee NI rates unchanged. The 8% rate applies on earnings between the primary threshold and upper earnings limit.
The employer NI rate increased from 13.8% to 15% from April 2026 (announced in Autumn Budget 2024). The secondary threshold also reduced from £9,100 to £5,000 — meaning employers pay NI on more of each employee's salary.
Class 4 NI on self-employed profits: 6% between £12,570 and £50,270, 2% above. Class 2 NI was abolished from April 2024.
The tax-free dividend allowance remains at £500 (cut from £1,000 in 2024/25, £2,000 before that). Basic rate: 8.75%, higher rate: 33.75%, additional rate: 39.35%.
From April 2025, the nil-rate threshold for first-time buyers reverted from £425,000 to £300,000 for the nil-rate portion. Relief applies on properties up to £500,000 (reduced from £625,000). Above £500,000, standard rates apply with no FTB relief.
The surcharge on second homes and buy-to-let properties increased from 3% to 5% from October 2024 (Autumn Budget announcement). Applies on top of standard SDLT rates.
The pension annual allowance stays at £60,000 for 2026/27. Carry-forward from the previous three years can increase this significantly.
The tax-free lump sum allowance (which replaced the Lifetime Allowance from April 2024) remains at £268,275.
Applies once you've accessed pension savings flexibly (drawdown). Limits further contributions to £10,000 gross per year.
Child Benefit is uprated each April by CPI. The eldest child rate for 2026/27 is £25.60/week (£1,331/year). Each additional child: £16.95/week (£881/year).
The charge-free threshold (£60,000) and full clawback point (£80,000) are unchanged from 2024/25 when they were reformed. No change for 2026/27.
CT on profits up to £50,000 stays at 19%.
Applies on profits above £250,000. Marginal relief applies between £50,000 and £250,000.