Thresholds are frozen until April 2031. See what you'd pay if they had risen with inflation instead - and what the freeze costs you between now and then.
If thresholds had kept pace with inflation since 2021
Personal Allowance
(frozen: )
40% threshold
(frozen: £50,270)
The freeze costs you, 2026/27 → April 2031
extra Income Tax over the remaining frozen years
Dragged into a higher band in
On these pay rises you cross the frozen £50,270 line in - under inflation-linked thresholds that slice of your pay would still be taxed at the basic rate. Pension contributions can pull your taxable income back under the line.
Estimate. Assumes CPI uprating each April had the freeze not happened (actual CPI to 2026, 2% target after), Income Tax only.
The gap between the two lines is fiscal drag - tax you pay only because the thresholds stopped moving.
| Tax year | Your salary | Tax (frozen) | Tax (CPI-linked) | Freeze costs you | Cumulative |
|---|---|---|---|---|---|
CPI-linked column uprates the Personal Allowance, band ceilings and the £100,000 taper start by CPI each April from their 2021 freeze values (September CPI: 3.1%, 10.1%, 6.7%, 1.7%, 3.8%; then an assumed 2% a year). Scottish bands are uprated by the same index for comparison.
The Fiscal Drag Calculator (Threshold Freeze) does more than show a number. Below your result it explains what your figures mean in practice - your effective and marginal rates, any allowances or thresholds you are close to, and the specific steps to take next. Enter your details above and the guidance updates to match your situation.
Do this next, in order
Estimates only - not financial or tax advice. Confirm figures on GOV.UK or with an adviser.
| Scenario | Extra this year | Total to 2031 | |
|---|---|---|---|
Fiscal Drag Calculator (Threshold Freeze) by TaxFly — free UK tax calculators