60% Tax Trap Calculator

Between £100,000 and £125,140 the Personal Allowance taper pushes your real marginal rate to 60% · 62% with NI. See what it costs you and the pension contribution that escapes it.

Extra Tax from the Taper
£0
Enter your income to calculate
Adjusted Net Income
£0
Income in the Trap Zone
£0
Personal Allowance Left
£12,570
Your Marginal Rate
0%
Pension to Escape the Trap
£0
Tax Saved by That Contribution
£0
Enter your income to get started.
Real Marginal Tax Rate by Income · 2026/27
The Trap Zone at a Glance
Income Band Income Tax With 2% NI
£50,271 · £100,00040%42%
£100,001 · £125,14060%62%
Above £125,14045%47%

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60% Tax Trap FAQs

What is the 60% tax trap?
Between £100,000 and £125,140 of income, your £12,570 Personal Allowance is withdrawn at £1 for every £2 earned. Each £100 earned in this zone suffers £40 of higher-rate tax plus £20 of extra tax caused by losing £50 of tax-free allowance · a 60% effective rate, or 62% once 2% National Insurance is included.
How do I escape it?
Pension contributions reduce your adjusted net income pound for pound. Contributing everything above £100,000 into your pension restores the full Personal Allowance, which means effective tax relief of around 60% on that contribution · the best relief available anywhere in the UK system. Salary sacrifice adds NI savings on top, and Gift Aid donations also reduce adjusted net income.
Does the £100k threshold affect childcare?
Severely. If either parent's adjusted net income exceeds £100,000, the family loses Tax-Free Childcare (up to £2,000 per child per year) and the free 15/30 nursery hours for under-5s, worth £6,000+ per child. A £1 pay rise over £100k can cost a family with two nursery-age children more than £14,000 · the most extreme cliff edge in the tax system. A pension contribution fixes it.
What counts as adjusted net income?
All taxable income · salary, bonus, benefits in kind, rental profits, dividends, savings interest · minus gross pension contributions and gross Gift Aid. It is this figure, not just your salary, that drives the taper and childcare eligibility, so a bonus or rental income can push you into the trap unexpectedly.
Is the trap worse than the 45% additional rate?
Per pound, yes. The 60-62% rate between £100,000 and £125,140 is higher than the 45-47% charged above £125,140. Advisers almost universally recommend pension contributions for anyone earning in this band · the taper zone is where each pension pound works hardest.

For informational purposes only · Not tax advice · 2026/27 rates: PA £12,570 tapered £1 per £2 above £100,000 adjusted net income, higher rate 40%, additional 45%, NI 2% at this level · England, Wales and NI rates (Scottish higher earners face similar taper with different band rates)