Home · £100k tax trap

The £100,000 "60% tax trap" — and how to get out of it

Between £100,000 and £125,140, part of your income is effectively taxed at 60% — even though there's no 60% band. It's your Personal Allowance being taken away. Here's how much, and the pension contribution that escapes it.

See your position

£
£
Gross contributions reduce your adjusted net income.
Download on the App Store

Private by design — your salary is never sent to a server. See our methodology.

Why the rate is 60%

For every £2 you earn over £100,000, you lose £1 of your £12,570 Personal Allowance. So an extra £1 of salary in this band is taxed at 40% (£0.40) and exposes £0.50 of previously tax-free allowance to 40% tax (£0.20) — a combined £0.60 on the £1, a 60% effective rate (closer to 62% once 2% NI is added). The allowance is fully gone at £125,140, after which the marginal rate drops back.

How to escape it

The trap is based on adjusted net income, which pension contributions reduce. If you earn £110,000 and contribute £10,000 (gross) to a pension, your adjusted net income falls to £100,000 and your full Personal Allowance is restored — so the effective relief on that £10,000 can be around 60%. Salary sacrifice into a pension does the same and also saves NI.

Worth knowing: crossing £100,000 can also cost access to Tax-Free Childcare and the funded childcare hours, which sharpens the cliff for parents.

Common questions

What is the 60% tax trap?
The effective 60% marginal rate on income between £100,000 and £125,140, caused by the gradual withdrawal of the Personal Allowance.
At what income does it start and end?
It applies between £100,000 and £125,140 for 2026/27.
How do I avoid the 60% trap?
Reduce your adjusted net income — most commonly by increasing pension contributions (including via salary sacrifice) — so it sits at or below £100,000.
Does it apply in Scotland?
The Personal Allowance withdrawal is UK-wide, but the surrounding tax bands differ in Scotland; the calculator handles both.

See your exact position in Pursely

The app shows the contribution that escapes the trap alongside your take-home, pension projection and what's left to spend — privately, on your iPhone.

Download on the App Store

Sources: Income Tax rates & Personal Allowance (gov.uk) · Adjusted net income (gov.uk) · Pursely methodology

Last updated June 2026 · maintained by Andrei Vlaic.

Pursely provides estimates for guidance only and is not financial, tax or investment advice. Figures are updated each tax year.