UK tax · Allowances
60 percent tax trap calculator.
Between £100,000 and £125,140 each extra £1 is taxed at 60%, or 62% with National Insurance.
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Why is it a 60 percent tax trap?
Over £100,000 you lose £1 of Personal Allowance for every £2 of income. That extra £1 of income is taxed at 40% and also uncovers 50p of allowance taxed at 40%, so the Income Tax rate is 60% in England, Wales and Northern Ireland. Add the 2% employee National Insurance above £50,270 and the combined rate is 62%. In Scotland the advanced rate of 45% applies in this zone, so the effective Income Tax rate is 67.5% (45% x 1.5), or 69.5% with NI.
Worked example. On £110,000 a £10,000 pension contribution by salary sacrifice brings income to £100,000, restoring £5,000 of allowance. It saves £6,000 of Income Tax and £200 of NI, so the £10,000 costs about £3,800 of take-home pay.
Frequently asked questions
What is the 60 percent tax trap?
The effective Income Tax rate on income between £100,000 and £125,140, caused by the loss of Personal Allowance on top of the 40% higher rate.
Is the rate 60% or 62%?
Income Tax alone is 60%. Including the 2% employee National Insurance rate above £50,270 it is 62%.
What is the rate in Scotland?
Income Tax is 67.5% in this zone because the 45% advanced rate applies, and 69.5% with employee NI.
How do I escape it?
Cut adjusted net income to £100,000, for example by pension contributions or Gift Aid. Check the annual allowance and your employer scheme rules first.
Sources
Checked
- GOV.UK: Income Tax rates and Personal Allowances
- GOV.UK: Adjusted net income
- GOV.UK: Income Tax in Scotland
- GOV.UK: Rates and thresholds for employers 2026 to 2027
Figures are for the 2026-27 tax year. Runs entirely in your browser. Nothing you type is sent or stored.
Scope
A planning estimate using standard rates, not tax advice or an HMRC calculation. Your own position may differ. Check GOV.UK, your HMRC account or a qualified adviser before acting.