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Earning over £100,000: is the rise worth it?

Over £100,000 you can keep less than 40p of each extra pound. See the pension payment that gets you back under.

Your pay

Your yearly pay before anything is taken off. It's on your payslip or contract.

Scotland has its own income tax rates.

Do you use Tax-Free Childcare?
Your pension and loans

Your payslip shows this. If you're not sure, we'll use the most common way and tell you how much it matters.

Most workplace pensions take 5%.

Your payslip shows any student loan repayments.

Do you have a Postgraduate Loan?

Your answer

Enter your salary to see the effect of the £100,000 limit.

About this calculator

For anyone earning around £100,000, or expecting a rise or bonus that takes them over it.

What happens to your answers

We don’t keep them. Your answers go to our server to do the sums and aren’t stored or logged. If you copy a link to your answers, they’re in the link itself, so only share it with people you trust.

How it’s worked out

Above £100,000 you lose £1 of your tax-free allowance for every £2, until it's gone at £125,140. With 40% tax, that works out at 60% on the slice in between, plus National Insurance. Above £100,000 you also lose Tax-Free Childcare and free childcare hours. Paying the excess into a pension brings your income back down.

Worked example

You keep about £38 of every £100 above £100,000. Paying the £10,000 into a pension would really cost you £4,000 (40%) and save £4,000 of Tax-Free Childcare.

2026/27 tax year · England · no pension · no student loan

Worked example, step by step
Income for the £100,000 test£110,000
Over £100,000 by£10,000
Tax-free allowance lost£5,000
Tax-Free Childcare lost (2 children)£4,000
Pay £10,000 into a personal pension (£8,000 from your bank; the provider adds the rest)£8,000
Less tax-free allowance won back (less tax through your pay)− £2,000
Less higher-rate relief you claim back− £2,000
Real cost to you£4,000

Worked out using HMRC's published rates for the 2026/27 tax year (6 April 2026 to 5 April 2027), on a yearly basis.

Questions people ask

Which income counts?

Your income after pension contributions and Gift Aid. Salary sacrifice and pension payments reduce it.

Is putting it all in my pension sensible?

It's very tax-efficient, but the money is locked away until you're at least 55 (57 from April 2028). Talk to us about the right amount.

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