Additional Rate

The additional rate is the highest UK income-tax band, currently 45%. It applies to income above £125,140 in 2026 — a threshold that lines up deliberately with the point the personal allowance has fully tapered away. The threshold was £150,000 until April 2023, when it was cut to £125,140 in the Autumn Statement.

The effective rate between £100,000 and £125,140 is materially higher than 45% because of the personal-allowance taper interacting with the higher rate. A worker earning £110,000 loses £5,000 of allowance, which means £5,000 of income that would have been tax-free at 0% is now taxed at 40% — producing a real marginal rate of 60% across the taper zone. Many high earners therefore aim to keep adjusted net income at or below £100,000 via pension contributions, gift aid, or salary sacrifice.

Above the £125,140 threshold the math is cleaner — every extra pound is taxed at 45% income tax plus NI. Combined with employer NI and any student loan deduction, the total marginal wedge can sit close to 50%.

Use the PAYE calculator to see at what salary level you cross the threshold, or the self-assessment calculator to model the taper zone in detail.