What changes when you earn over £100,000?
Explore how the personal allowance taper affects tax, then see how a gross personal pension contribution changes adjusted net income and potential relief.
Explore the personal allowance taper
Full-year employment, tax code 1257L, no student loans, benefits or other income. The pension example uses relief at source.
Rates checked 9 September 2026 against GOV.UK: rates and thresholds for employers 2026 to 2027 and gov.scot: Scottish Income Tax rates and bands 2026 to 2027.
Includes the provider top-up. A £10,000 gross target normally costs £8,000 before further relief.
| Annual measure | No pension | With personal pension |
|---|---|---|
| Adjusted net income | £110,000 | £100,000 |
| Personal allowance after any relief | £7,570 | £12,570 |
| Cash contribution | £0 | £8,000 |
| Provider top-up into pension | £0 | £2,000 |
| Income Tax before further claim | £33,432 | £33,432 |
| Potential further tax relief | £0 | £4,000 |
| Take-home before further claim | £72,357 | £64,357 |
| Take-home after further relief | £72,357 | £68,357 |
Further relief may need a claim or tax-code adjustment. The main cash estimate does not assume it has already been received. Pension eligibility, contribution limits and any annual allowance charge must be checked separately.
Why is it called the 60% tax band?
The standard personal allowance falls by £1 for each £2 of adjusted net income above £100,000. In England, Wales and Northern Ireland, income in the taper range can therefore face an effective 60% Income Tax charge: 40% on extra income and more tax as the allowance falls. National Insurance and student loans are separate. Scottish rates produce a different result.
What is adjusted net income?
It includes taxable income with certain deductions, such as gross relief-at-source pension contributions and grossed-up Gift Aid. This example includes employment pay and the entered pension only. Other income or reliefs may change your position.
When does the allowance disappear?
With the standard £12,570 allowance, the taper removes it fully at £125,140 of adjusted net income. A custom tax code, additional allowances or other circumstances can change an estimate.
Is salary sacrifice different?
Yes. The pension comparison calculator separates salary sacrifice, net pay and relief at source for the same pension target. For changes in your ongoing salary, use the pay rise calculator.
Sources: Income Tax rates and allowances and HMRC adjusted net income guidance. This illustration does not assess childcare eligibility or other means-tested benefits.