Frozen Tax Bands
Interactive visualization of the 60% tax trap and frozen threshold impact on your taxes.
What Are Frozen Tax Bands?
Tax thresholds should increase with inflation to keep pace with wage growth. However, since April 2021, the UK government has frozen these thresholds. This means more of your income falls into higher tax brackets purely due to inflation, not real growth. This is called "fiscal drag."
Personal Allowance
£12,570
Frozen since 2021
Basic Rate Threshold
£50,270
Frozen since 2021
Additional Rate
£125,140
Reduced from £150k
📊 Data Sources & Methodology
Inflation Adjustment (20.6%)
Based on Office for National Statistics (ONS) Consumer Price Index (CPI) data. From April 2021 (freeze began) to March 2026, cumulative inflation was 20.6%.
Source: ONS CPI Data (Series CZBH)
Tax Impact Calculations
Extra tax calculations based on UK income tax rates for the relevant tax years (2015-26). Assumes standard personal allowance, no other reliefs, and England/Wales/Northern Ireland rates.
Source: HMRC Rates and Thresholds
Why Thresholds Were Frozen
In 2021, the government announced a freeze on personal allowance and basic rate threshold to September 2025 (later extended). This was part of tax policy to raise revenue while controlling headline tax rate changes.
Source: House of Commons Library - Tax Thresholds (CBP-8901)
Extra Tax You're Paying
Total Extra Tax Paid
£1,600
Since frozen thresholds began (2021)
Annual Impact
£145
Average per year (2015-2026)
Cumulative Tax Impact Since 2015
Historical data shows cumulative extra tax paid since 2015 for a £60k salary. The red line marks April 2021 when thresholds were frozen.
Fiscal Drag
You move into higher tax brackets purely due to inflation, not real income growth. This silently increases your tax burden year after year.
Lost Purchasing Power
You're paying more tax on the same real income. Your take-home pay doesn't keep up with inflation, so you can afford less over time.
⚖️ Important Disclaimer
Frozen Until 2031: The UK government has announced that personal allowance and basic rate threshold will remain frozen until April 2031. Projections beyond 2026 assume current inflation rates and tax policy continues unchanged.
This Is Not Tax Advice: This calculator shows estimated impact based on standard 2026 tax rules. Your actual tax position may differ due to reliefs, allowances, or personal circumstances. Always consult HMRC or a qualified tax advisor for your specific situation.
Data Sources: All calculations use official ONS inflation data and HMRC tax rates. Projections assume linear continuation of current inflation rates, which may not reflect actual future inflation.
Last Updated: March 2026 | Data Based On: ONS CPI (March 2026) | HMRC Rates (6 April 2026)