£100k tax trap and adjusted net income calculator
Find out how much personal allowance you lose over £100,000, and how much you'd need to pay into a pension to get it back.
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An estimate from the figures you entered. It is not financial advice.
How the £100,000 taper works
Once your adjusted net income goes over £100,000, your £12,570 personal allowance is cut by £1 for every £2 above that line. At £125,140 it's gone. Because the allowance you lose is then taxed at 40%, every extra pound in this range costs 60p in income tax.
| Adjusted net income | Personal allowance |
|---|---|
| £100,000 | £12,570 |
| £105,000 | £10,070 |
| £110,000 | £7,570 |
| £120,000 | £2,570 |
| £125,140 or more | £0 |
How this is calculated
Adjusted net income is your total taxable income, less pension contributions taken from gross pay, less personal pension payments and Gift Aid grossed up by 25%. The calculator takes that figure, applies the taper and works out your income tax. It then tests a gross pension contribution big enough to bring you back to £100,000 and shows how much income tax that saves. That's the tax relief you'd get, which is usually 60% in England, Wales and Northern Ireland.
It simplifies one thing. Relief at source contributions and Gift Aid also extend your basic rate band. That makes a small extra difference which isn't shown here.
Worked example: a £110,000 salary
Priya earns £110,000 in Leeds and makes no pension contributions outside her employer's minimum.
- Adjusted net income: £110,000, which is £10,000 over the line
- Allowance lost: £5,000, leaving £7,570
- Income tax: £33,432
If she sacrifices £10,000 of salary into her pension, her allowance goes back to £12,570 and her income tax falls to £27,432. The £10,000 contribution costs her £4,000 after the £6,000 tax saving, and she saves 2% NI on top through salary sacrifice.
Questions people ask
What is the 60% tax trap?
Between £100,000 and £125,140 of adjusted net income you lose £1 of personal allowance for every £2 you earn. Each extra £1 costs 40p in higher rate tax plus another 20p because £0.50 of allowance is now taxed at 40%. That makes 60p in every pound, plus 2% NI. In Scotland the effective rate is 67.5%.
What counts towards adjusted net income?
All your taxable income (salary, bonus, self-employed profit, rent, interest, dividends) minus pension contributions that get tax relief and Gift Aid donations. Contributions made through relief at source and Gift Aid are grossed up, so a £8,000 personal pension payment counts as £10,000.
How much pension do I need to pay to get back under £100,000?
Enough to bring adjusted net income down to £100,000. If you earn £110,000, a £10,000 gross contribution does it. Through salary sacrifice or a net pay scheme that £10,000 comes off your gross pay. Through relief at source you pay £8,000 and the provider adds £2,000.
What else do I lose above £100,000?
Tax-Free Childcare and the funded childcare hours for working parents in England stop if either parent’s adjusted net income is over £100,000. For a family with young children that can be worth far more than the tax.
Is there a limit on how much I can pay into a pension?
Yes. The annual allowance is £60,000 of contributions a year (including your employer’s), and you can carry forward unused allowance from the last three years. It tapers down for people with income over £260,000.
Sources
- Personal Allowances: adjusted net income (GOV.UK)
- Income Tax rates: income over £100,000 (GOV.UK)
- Income Tax rates and Personal Allowances (GOV.UK)
- Scottish Income Tax rates and bands 2026 to 2027 (Scottish Government)
Rates and review
Uses rates for the 2026/27 tax year. Figures last checked against the sources on 25 October 2026.
Written by author to be named. Reviewed by qualified reviewer to be named.
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