About the UK 60% Tax Trap Calculator
Between £100,000 and £125,140 of adjusted net income, the UK personal allowance is withdrawn at £1 for every £2 you earn. Every extra £1 is taxed at 40% and also drags 50p of previously tax-free income into the 40% band, so the effective income tax rate on that slice is 60% — 62% once 2% employee National Insurance is added (and 67.5% for Scottish taxpayers, whose 45% advanced rate covers this range). This calculator shows where you sit in the trap for the 2026/27 tax year, how much of your £12,570 allowance you have lost and what that costs.
It is built for employees and directors earning around £100,000 who want to know whether a pay rise or bonus is worth taking as cash, and how much to put into a pension (or give through Gift Aid) to get the allowance back. Enter your gross income and any pension contribution and it works out the contribution needed to bring adjusted net income down to £100,000, the tax and NI it saves and its true net cost.
The calculation assumes all your income is employment income taxed under the main UK or Scottish rates, and that pension contributions reduce adjusted net income pound for pound (salary sacrifice, net pay or the grossed-up value of relief-at-source contributions). Losing tax-free childcare and the 30 hours of funded childcare above £100,000 is not included but can make the trap far more expensive.
With the default inputs, the effective marginal rate (tax + ni) is 62%. Change any value above to recalculate instantly.
How to use the uk 60% tax trap calculator
- 1Enter your gross income for the 2026/27 tax year, including bonuses.
- 2Add any pension contributions or grossed-up Gift Aid you already make.
- 3Choose salary sacrifice or personal contributions and your tax region.
- 4Read your marginal rate and the extra pension needed to restore your allowance.
- 5Check the net cost of that contribution to decide how much to sacrifice.
Formula and method
Adjusted net income (ANI) is your taxable income less gross pension contributions and grossed-up Gift Aid. Above £100,000 the personal allowance falls by £1 for every £2 of ANI, reaching zero at £125,140. In that band, £1 of extra income is taxed at 40% and also removes 50p of allowance that is then taxed at 40%, so the marginal rate is 60%; with 2% employee NI it is 62%. Scottish taxpayers pay 45% in this range, so their taper rate is 67.5%.
The calculator works out tax and NI with and without your pension contributions and measures the marginal rate as the extra tax and NI on the next £100. The contribution needed to escape the trap is ANI minus £100,000; its saving is the drop in tax (plus NI for salary sacrifice), and its net cost is the contribution less that saving.
- ANI
- Adjusted net income
- PA
- Personal allowance after the taper
Worked examples
£110,000 salary in England, no pension
ANI of £110,000 is £10,000 over the threshold, so £5,000 of allowance is lost, costing £2,000 at 40%. Income tax is £33,432 and the next £100 costs £62 in tax and NI. Sacrificing £10,000 saves £6,000 of tax and £200 of NI, so it costs only £3,800.
£120,000 with £5,000 already sacrificed
ANI is £115,000, so £7,500 of allowance is lost. Another £15,000 of salary sacrifice brings ANI to £100,000, saving £9,000 of income tax (60%) and £300 of NI (2%) — £9,300 in total.
Scottish taxpayer on £105,000
In Scotland the taper band is taxed at the 45% advanced rate, so the effective income tax rate is 67.5%, or 69.5% with NI. Losing £2,500 of allowance costs £1,125.
Frequently asked questions
What is the 60% tax trap?+
It is the band of adjusted net income between £100,000 and £125,140 where the personal allowance is withdrawn at £1 for every £2 of income. Combined with the 40% higher rate, each extra pound is effectively taxed at 60%, or 62% including employee NI.
How do I avoid the 60% tax trap?+
Reduce adjusted net income to £100,000 or less. Pension contributions (especially salary sacrifice) and Gift Aid donations both reduce ANI, so each £1 contributed in the taper band attracts 60% relief, or 62% with salary sacrifice.
What counts as adjusted net income?+
Adjusted net income is total taxable income (salary, bonus, self-employed profit, rental profit, savings and dividends) minus certain reliefs: gross personal pension contributions and grossed-up Gift Aid donations. Salary sacrifice reduces salary before it is counted at all.
Is the rate higher in Scotland?+
Yes. Scottish taxpayers pay the 45% advanced rate on income from £75,001 to £125,140, so withdrawing the allowance in the £100,000–£125,140 band creates an effective 67.5% income tax rate, or 69.5% including 2% NI.
What else do I lose above £100,000?+
Families lose Tax-Free Childcare and the funded 30 hours of childcare in England when either parent’s adjusted net income exceeds £100,000. For a family with young children this cliff edge can cost more than the tax itself.
Are the thresholds going up?+
The £100,000 taper point has not changed since it was introduced in 2010, and the personal allowance and higher-rate threshold are frozen until April 2031, so more people fall into the trap each year as pay rises.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.