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IncomeFix

60% Tax Trap Calculator 2026/27

Last updated: March 2026 — Rates for the 2026/27 tax year

If you earn between £100,000 and £125,140, you're caught in the "60% tax trap" — where your effective marginal tax rate spikes due to the loss of your personal allowance. Use this calculator to understand the impact and explore ways to reduce it.

What is the 60% Tax Trap?

Between £100,000 and £125,140, you lose £1 of personal allowance for every £2 earned above £100,000. This means your effective marginal tax rate jumps to around 60% (or higher in Scotland) — making each extra pound of earnings worth only 40p after tax and NI.

Your Salary

Enter your salary to see your marginal rate

Marginal Tax Rate by Salary Level
SalaryPersonal AllowanceTotal Tax + NITake-HomeMarginal Rate
£90,000.00£12,570.00£27,242.60£62,757.4042.0%
£95,000.00£12,570.00£29,342.60£65,657.4042.0%
£100,000.00£12,570.00£31,442.60£68,557.4042.0%
£105,000.00£10,070.00£34,042.60£70,957.4042.0%
£110,000.00£7,570.00£36,642.60£73,357.4042.0%
£115,000.00£5,070.00£39,242.60£75,757.4042.0%
£120,000.00£2,570.00£41,842.60£78,157.4042.0%
£125,000.00£70.00£44,442.60£80,557.4042.0%
£130,000.00£0.00£46,799.60£83,200.4047.0%
£135,000.00£0.00£49,149.60£85,850.4047.0%

Red rows indicate salaries within the 60% tax trap zone (£100,000–£125,140).

Frequently Asked Questions

Why is there a 60% tax rate between £100k and £125k?▾

Your personal allowance of £12,570 is reduced by £1 for every £2 you earn above £100,000. This means you effectively pay 40% income tax plus 20% on the lost allowance, giving a marginal rate of 60% (plus 2% NI).

How can I avoid the 60% tax trap?▾

The most common strategy is salary sacrifice into a pension. By reducing your taxable income to £100,000, you restore your full personal allowance and get employer NI savings on the sacrificed amount.

Does Scotland have a higher tax trap?▾

Yes. Scottish taxpayers face an effective marginal rate of around 61.5% in the trap zone due to the higher Scottish tax rate of 42% applying to this income range, compared to 40% in England and Wales.