How Much Tax on a £100,000 Salary in the UK?
£100,000 is one of the most punitive marginal tax rates in the UK because earning more makes you lose your personal allowance.
On a £100,000 gross salary you take home about £68,486 a year — roughly 68p in the pound. But the marginal rate above £100,000 is brutal.
The 60% tax trap
From £100,000 to £125,140, your personal allowance is reduced by £1 for every £2 you earn. That's an extra 20% tax on top of the 40% higher rate — a 60% marginal rate (62% with NI).
Practical fix: pay any pay-rise or bonus straight into your pension via salary sacrifice. A £10,000 bonus paid into your pension is worth £10,000 in your pot. Taken as cash, after tax and NI it's roughly £4,200.
Other thresholds to know
At £100k you also lose access to tax-free childcare and 30 hours free childcare for under-5s. For families this can be worth thousands and makes the trap even worse.
Work out your UK income tax and National Insurance for the 2025/26 tax year. Covers personal allowance taper, basic, higher and additional rates.
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