UK £100k Tax Trap Calculator
See exactly how deep you are into the 60% effective tax trap and how much salary sacrifice you'd need to escape it. Updated for tax year 2026-27 with Scotland bands and the £100,000–£125,140 personal allowance taper built in.
Advanced — already doing salary sacrifice?
| Income range | IT rate | NI rate | PA loss | Effective |
|---|---|---|---|---|
| £100,000–£105,000 | 40% | 2% | 20.0% | 62.0% |
| £105,000–£110,000 | 40% | 2% | 20.0% | 62.0% |
| £110,000–£115,000 | 40% | 2% | 20.0% | 62.0% |
| £115,000–£120,000 | 40% | 2% | 20.0% | 62.0% |
| £120,000–£125,140 | 40% | 2% | 20.0% | 62.0% |
| £125,140+ | 45% | 2% | — | 47% |
Pre-filled with salary £115,000 and a sacrifice of £15,000/year (£1,250/month) to escape the trap.
Open Salary Sacrifice Calculator →Frequently asked questions
What is the £100k tax trap?
When your income exceeds £100,000, your personal allowance (£12,570) is reduced by £1 for every £2 of income above £100,000. The allowance is fully withdrawn at £125,140. This creates an effective marginal rate of 62% in England, Wales and Northern Ireland on income in this zone.
Why is the marginal rate 62% (not 60%)?
The headline figure is 60% (40% income tax + 20% effective rate from PA loss). Adding 2% employee National Insurance gives 62% on each extra pound earned. Some sources say "60% trap" ignoring NI, but 62% is the full marginal rate for employees.
Does the trap apply in Scotland?
Yes — the personal allowance is set UK-wide. In Scotland the Advanced rate (45%) typically applies in this zone for 2026-27, giving an effective marginal rate of 45% + 22.5% PA-loss + 2% NI = 69.5%.
Can salary sacrifice fully eliminate the trap?
Yes. By sacrificing enough into a workplace pension to bring your taxable income to £100,000, you avoid the trap entirely. For example, a £115,000 earner can sacrifice £15,000/year (£1,250/month) into pension to escape, saving roughly £9,300/year in tax + NI while building £15,000 of pension.
What about pension contributions vs Gift Aid?
Both work, but they apply differently. Workplace salary sacrifice reduces gross pay before income tax and NI, so saves the full marginal rate plus 2% NI. Personal pension contributions and Gift Aid extend your basic-rate band by the gross-up amount, recovering 40% (or 45%) tax via your tax return — they don't save NI. Salary sacrifice is usually the most efficient.
What happens when I cross £125,140?
You leave the 60% trap and your personal allowance is gone. The marginal rate drops to 47% in E&W (45% additional rate + 2% NI) or 50% in Scotland (48% top rate + 2% NI). Counter-intuitively, the rate falls when you earn more.
Official sources
- gov.uk — Income over £100,000
- gov.uk — Income Tax rates and Personal Allowances
- gov.uk — Scottish Income Tax
- mygov.scot — Current Scottish Income Tax rates 2026-27
Reviewed April 2026 · 2026-27 rates (2025-26 / 2024-25 also supported)
Related Calculators
Learn More
The £100,000–£125,140 Personal Allowance Trap: How to Escape the 60% Tax Rate
Earning between £100,000 and £125,140 creates an effective 60% income tax rate as your Personal Allowance is clawed back. Pension contributions, salary sacrifice, and Gift Aid donations can legally reduce your income and restore the allowance.
UK 60% Tax Trap £100k–£125,140 — Personal Allowance Taper 2025-26 (HMRC)
HMRC Personal Allowance taper for 2025-26 and 2026-27: earn £100k–£125,140 and you lose £1 of PA per £2 of extra income, creating a 60% effective marginal rate. Exact numbers and escape routes.
Salary Sacrifice Pension: Save £1,000s on Tax and NI
Salary sacrifice can save you thousands in tax and National Insurance. See how it works, the real savings at each income level, and the trade-offs to watch for.