The £100k to £125,140 tax trap

Above £100,000 you lose tax-free allowance, and parents can lose childcare support.

Your details

Your result

Tax on each extra £1 you earn62.0%
Pension of £10,000 to get back to £100,000
  • Your take-home cost38%£3,800
  • Tax and NI you save62%£6,200
Take-home pay£72,357
Personal allowance left£7,570
Cost per £1 in pension£0.38
Show the working
Income tax on £110,000
Personal allowance (reduced above £100k)£7,570
Taxable income: £110,000 − £7,570£102,430
Income tax 20% on £37,700£7,540
Income tax 40% on £64,730£25,892
Assumptions and limits

The marginal rate is about 62% including National Insurance. The test is adjusted net income, which pension contributions and Gift Aid reduce. Tax-Free Childcare is worth up to £2,000 per child a year (£4,000 if disabled); losing working-parent funded hours can be worth several thousand more. Pension cost assumes salary sacrifice.

Sources: Income Tax rates · Income over £100,000 · Tax-Free ChildcareTax year 2026/27

Common questions

Why is it called the 60% tax trap?

Between £100,000 and £125,140 you pay 40% tax and also lose £1 of tax-free allowance for every £2 you earn. Together that works out at 60%, or 62% with National Insurance.

What is adjusted net income?

Your total taxable income, minus things like pension contributions and Gift Aid donations. It’s the figure used for the £100,000 and £60,000 tests.

How can I get back below £100,000?

Pension contributions, through salary sacrifice or paid personally, and Gift Aid donations both reduce adjusted net income.

How we calculate

Every calculator uses the published 2026/27 rates from one shared set of rules, so when a rate changes, it changes everywhere.

Where rates come from

Tax, National Insurance, student loan, benefit and property tax rates come from GOV.UK. Each calculator links to its sources.

What we don’t cover

Scottish income tax bands, tax codes other than 1257L, benefits in kind and your personal circumstances. Results are estimates to help you plan, not a payslip or advice.