Results are estimates for guidance only and do not constitute financial advice. These calculations use standard England/Wales/NI rates without Scottish bands, pension deductions, or student loans.
How to Use the Income Tax Comparison Tool
- Enter your annual salary — type the same gross salary for a like-for-like comparison of how tax rules have affected your take-home pay over time.
- Select Tax Year A — pick the first year you want to compare. This appears in the left column of the results.
- Select Tax Year B — pick the second year. The tool highlights the difference between the two years.
- Click "Compare" — a side-by-side table shows income tax, NI, total deductions, and take-home pay for both years, with the difference highlighted in green (saving) or red (extra cost).
How UK Income Tax Has Changed
Between 2022/23 and 2025/26, the most significant changes have been to National Insurance rates. The employee NI rate peaked at 13.25% in 2022/23 (including the temporary Health and Social Care Levy), fell to 12% in 2023/24, and then dropped to 8% from 2024/25 onwards. Meanwhile, the personal allowance and higher rate threshold have been frozen, creating fiscal drag that pulls more earners into higher bands as wages rise.
How has income tax changed from 2022 to 2026?
The personal allowance has remained frozen at £12,570 since 2021/22, and the higher rate threshold at £50,270. The main change has been to National Insurance: the rate dropped from 13.25% in 2022/23 to 12% in 2023/24, then to 8% in 2024/25 and 2025/26. This means employees keep more of their pay despite frozen tax bands.
Why is my take-home pay different this year?
Even if your salary has not changed, your take-home pay can differ because of changes to NI rates, tax band thresholds, or student loan repayment thresholds. The frozen personal allowance also means that any pay rise pushes more income into taxable bands — a phenomenon known as fiscal drag.
What is fiscal drag?
Fiscal drag occurs when tax thresholds are frozen while wages rise with inflation. More of your income falls into higher tax bands even though your real purchasing power has not increased. The UK personal allowance has been frozen at £12,570 since 2021/22 and is expected to remain frozen until at least 2027/28.
Has the additional rate threshold changed?
Yes. The additional rate threshold was reduced from £150,000 to £125,140 starting from 2023/24. This means more higher earners now pay the 45% additional rate. The change effectively aligned the additional rate threshold with the point where the personal allowance is fully withdrawn.
How much more NI did I pay in 2022/23?
In 2022/23, the employee NI rate was 13.25% (including the temporary Health and Social Care Levy) compared to 8% in 2025/26. On a £35,000 salary, employee NI was approximately £2,974 in 2022/23 versus £1,794 in 2025/26 — a saving of roughly £1,180 per year.
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