The Chancellor, Rachel Reeves, has given her latest update on the economy in her Spring Statement, with the latest forecasts for inflation and wage growth over the next five years.

But while wages are expected to go up, you could also end up paying more tax on a rising salary because of frozen thresholds - the points at which you start paying more income tax and National Insurance on each extra pound you earn.

The Conservatives initially froze thresholds until 2028-29 and then Labour extended that until 2031.

The move raises additional revenue to pay for public services but is often called a stealth tax by economists because it increases the tax take without a government having to put up rates.

Use our calculator below to see how your pay could be affected.

The calculator applies to employees in England, Wales and Northern Ireland. Tax bands in Scotland are different, and self-employed workers are taxed differently.

This calculator estimates how much extra tax and National Insurance contributions (NICs) you will pay in 2030-31 due to frozen tax thresholds.

Using official forecasts produced by the OBR for the March 2026 Spring Statement, it estimates the extra amount you could pay compared with if thresholds had been allowed to rise from 2026-27, and how much of that is down to the current government's extension of the freeze from 2028-29.

The calculator does not store your results.

What does the calculator not take into account?

This calculator is designed to give you an idea of how much frozen tax thresholds could affect how much tax you pay over time, but there are various other factors that can determine your tax bill.

For example, if you are over the state pension age, you could be exempt from paying NICs. You can also get tax relief on pension contributions.

There are various other taxes you could pay, and tax credits and allowances you could potentially claim, which this calculator does not take into account.

It applies to employees working in England, Wales and Northern Ireland only. Scotland has different tax bands and thresholds.

It does not apply to self-employed workers, who are taxed differently.

How does it calculate how my earnings will rise?

It assumes your salary will rise in line with the OBR's financial year forecasts for average weekly earnings growth each year. These forecasts are the OBR's best estimate of how wages across the labour market will rise in the future, and actual wage growth could be different.

It also assumes your salary remains regular. If it fluctuates or you change jobs, this could affect how your earnings rise.

How does it calculate how tax thresholds will rise?

The calculator uses the same Consumer Prices Index (CPI) inflation figures the OBR uses to estimate how tax thresholds would rise in the future. Actual inflation could be higher or lower.

The personal allowance (PA) is rounded up to the nearest £10, and the basic rate limit is rounded up to the nearest £100. The additional rate threshold rises in line with the PA, which means your PA goes down by £1 for every £2 you earn over £100,000.

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