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 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.

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.

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 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

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