The 60% effective Income Tax band
Between £100,000 and £125,140, the standard Personal Allowance falls by 50p for each extra £1 of adjusted net income. At the higher Income Tax rate, this raises effective Income Tax on the extra pound. Employee National Insurance adds a further deduction above its upper earnings limit.
For each extra £1 in this band, 60p goes to effective Income Tax, 2p to employee National Insurance and 38p remains before pension, student-loan or other deductions. This chart follows England, Wales and Northern Ireland bands; Scotland has different Income Tax rates.
What the band means for a pay rise
A pay rise from £100,000 to £125,140 is £25,140 before tax. In England, Wales and Northern Ireland, £9,549.60 of it reaches take-home pay. The table uses the site’s take-home calculator with tax code 1257L, no pension and no student loan.
| Measure | England, Wales and NI | Scotland |
|---|---|---|
| Take-home at £100,000 | £68,561.00 | £65,261.40 |
| Take-home at £125,140 | £78,110.60 | £72,925.05 |
| Extra take-home | £9,549.60 | £7,663.65 |
| Share of the rise kept | 38% | 30% |
The £100,000 line has not moved since 2010-11
The Personal Allowance taper started in tax year 2010-11 at £100,000, and the line is the same in 2026/27. Prices have risen since then. If the line had risen with consumer prices from 2010 to 2025, it would be about £154,810. That uses the yearly average of the Consumer Prices Index for each year.
The same £100,000 figure applies to Tax-Free Childcare. If you or your partner expect adjusted net income over £100,000, you cannot claim it. The government top-up is worth up to £2,000 a year for each child.
Adjusted net income is your taxable income less certain deductions. Pension contributions are the most common one, so a larger contribution can bring income back under the line. The take-home pay calculator shows the full working for your own salary and pension.
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<img src="https://moneyworkedout.co.uk/assets/charts/the-60-percent-tax-band.svg" width="960" height="440" alt="Of each extra pound in the £100,000 to £125,140 band, 60 pence is effective Income Tax, 2 pence is employee National Insurance and 38 pence remains after those deductions.">
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</figure>Sources and chart notes
- Personal Allowance reduction and the £100,000 / £125,140 thresholds: GOV.UK Income Tax rates and Personal Allowances.
- Employee Class 1 NI rates and the 2026/27 upper earnings limit: GOV.UK rates and thresholds for employers.
- Start of the £100,000 line: Finance Act 2009, section 4.
- Consumer Prices Index, yearly averages: ONS series D7BT.
- Tax-Free Childcare income limit and top-up: GOV.UK Tax-Free Childcare eligibility and how it works.
- This illustrates marginal rates before payroll rounding; actual take-home depends on tax code, pay period, pension, loans and other income.
The SVG is a static image.