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60% Marginal Tax Trap Calculator 2026/27

Calculate your marginal tax rate on income between £100,000 and £125,140. See how much Personal Allowance you lose and how pension contributions beat the 60% trap.

✅ Official 2026/27 Rates 🎁 100% Free Tool

Personal Allowance Taper & 60% Tax Model

Personal Allowance Kept
£12,570
Marginal Tax Rate
60% (Avoided!)
Tax Saved via Pension
£9,000
True Cost of Pension
£6,000

What is the 60% Marginal Tax Trap?

In the UK, the standard Personal Allowance is £12,570. However, for every £2 you earn above £100,000, your Personal Allowance is reduced by £1. It disappears completely at £125,140.

Because you pay 40% income tax on earnings over £100,000 plus an extra 20% on the portion of allowance lost, your effective marginal tax rate on that £25,140 slice is an astonishing 60% (or 62% including 2% Employee NI).

How to Beat the 60% Tax Trap

By contributing to a private or workplace pension (or making Gift Aid charity donations), you reduce your Adjusted Net Income back below £100,000, instantly recovering your full £12,570 Personal Allowance and giving you an effective 60% return on pension funds.

Official Statutory Data Reference

Rates and calculations on this page are cross-referenced with official UK Government legislation: GOV.UK Income Over £100,000 & Personal Allowance Reduction (2026/27).