UK PAY GUIDE · 2026/27

The £100k tax trap explained

Once adjusted net income exceeds £100,000, the Personal Allowance is reduced by £1 for every £2 of excess income. This can create a high effective marginal tax rate before the allowance is fully withdrawn.

What it means

Use the calculator to compare take-home pay at different salaries and pension contribution levels. Salary sacrifice can affect adjusted income, but individual circumstances matter and regulated advice may be appropriate.

Run your own numbers

Open TakeHome Online calculators →

Important

These tools provide illustrative estimates and are not tax, legal or financial advice. Actual payroll treatment depends on individual circumstances.