100k salary trap calculator
Between £100,000 and £125,140 your Personal Allowance tapers away, creating an effective income tax rate of 60% in England or 67.5% in Scotland. Enter your salary to see whether you're in the trap and how much pension contribution would take you out of it.
You're in the trap zone
National Insurance is not included here. In the trap zone your NI marginal rate is 2% (above the Upper Earnings Limit of £50,270), so add 2 percentage points to the marginal rate shown if you want the combined figure.
Escape the trap with pension contributions
Income tax band breakdown
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OpenHow this is calculated
- We subtract your pension contributions from your gross salary to give your adjusted income. This is the figure HMRC uses to assess the Personal Allowance taper.
- We calculate your Personal Allowance (the tax-free slice of income, £12,570 in 2026/27). If your adjusted income is over £100,000, we reduce it by £1 for every £2 over that threshold. It reaches zero at £125,140.
- We apply the income tax bands to your taxable income (adjusted income minus Personal Allowance) in turn, filling each band from the bottom up.
- We calculate your effective marginal rate by computing the tax on your current income and on income £100 higher, then dividing the difference. In the taper zone (£100,000 to £125,140), each extra £2 of income creates £3 of taxable income: the £2 you earn plus £1 of lost Personal Allowance. At rUK higher rate (40%), that is 60p of tax on each £1. At Scotland advanced rate (45%), it is 67.5p.
- We show how much extra pension you would need to contribute to bring your adjusted income back to £100,000, restoring your full Personal Allowance, and the income tax saving that results.
Frequently asked questions
What is the 60% tax trap?
When your income exceeds £100,000, your Personal Allowance (the tax-free slice of income, £12,570 in 2026/27) is reduced by £1 for every £2 you earn above that. Every extra £2 earned costs you 40p in higher-rate tax plus 20p from the shrinking allowance. That is 60p of tax on each additional £1 between £100,000 and £125,140.
Why is the rate higher in Scotland?
Scottish taxpayers pay the advanced rate (45%) on income between £75,000 and £125,140. In the taper zone, each extra £2 of income creates £3 of taxable income. At 45%, that is £1.35 of tax on £2 earned, giving a 67.5% effective marginal rate rather than 60%.
How does pension salary sacrifice help?
Salary sacrifice reduces your gross income for tax purposes. HMRC sees a lower adjusted net income, so your Personal Allowance is less affected. Contribute enough to bring your adjusted income to £100,000 or below and your full allowance is restored. You also benefit from the employer National Insurance saving, which many employers pass back to you.
Does this apply to bonuses and other income?
Yes. HMRC assesses all income together: salary, bonuses, rental income, self-employment profit, and some benefits in kind. If a bonus pushes you above £100,000, the trap applies to that portion. Ask your employer whether the bonus can go directly into your pension instead.
What if my income is already above £125,140?
Above £125,140 your Personal Allowance has fully withdrawn and your marginal rate drops back to 45% (rUK additional) or 48% (Scotland top rate). The trap effect is over, but pension contributions still save tax at those rates.
Is there a limit on pension contributions?
You can contribute up to £60,000 per year to your pension (the annual allowance for 2026/27) and receive tax relief. Both your contributions and any employer contributions count toward this limit. Higher earners above £260,000 may face a tapered annual allowance that reduces this further.
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This calculator is for general guidance only. It does not replace advice from a tax adviser or accountant on your personal circumstances.
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