UK 45% Additional Rate Tax Bracket (2026/27)
The 45% additional rate applies above £125,140 in 2026/27; with 2% NI the marginal rate is 47%. Take-home from £125k to £250k, rest of UK.
Outside Scotland, the 45% additional rate of Income Tax applies to income above £125,140 in 2026/27. With 2% employee NI the marginal rate above this point is 47% - lower than the 62% inside the £100,000-£125,140 Personal Allowance taper band. The threshold fell from £150,000 to £125,140 on 6 April 2023 (Finance Act 2023 s.6).
Take-home above the threshold
England, 2026/27, no pension contribution or student loan, computed by the site's salary calculator:
| Gross salary | Annual take-home | Monthly |
|---|---|---|
| £125,140 | £78,111 | £6,509 |
| £140,000 | £85,986 | £7,166 |
| £150,000 | £91,286 | £7,607 |
| £175,000 | £104,536 | £8,711 |
| £200,000 | £117,786 | £9,816 |
| £250,000 | £144,286 | £12,024 |
Related
Frequently asked questions
When does the 45% additional-rate tax bracket start?
Outside Scotland, the 45% additional rate applies to income above £125,140 in 2026/27. An employee also pays 2% Class 1 National Insurance at that level, so the combined marginal rate is 47%. The threshold was £150,000 until 5 April 2023 and has been £125,140 since 6 April 2023 (Finance Act 2023 s.6).
Why £125,140 specifically?
Section 10(5A) of the Income Tax Act 2007 sets the higher rate limit at twice the Personal Allowance plus the £100,000 point where the allowance starts to be withdrawn: 2 × £12,570 + £100,000 = £125,140. Because the allowance falls by £1 for every £2 above £100,000, that is exactly where a standard allowance reaches nil.
Is the 45% threshold different in Scotland?
Yes. Scotland has no additional rate. In 2026/27 its 45% advanced rate covers the Personal Allowance taper band, and the 48% top rate applies above £125,140 (it was 47% in 2023/24). That makes 50% with NI above £125,140, and 69.5% inside the taper band, where the lost allowance is taxed too.
Why is 47% lower than the 62% PA-taper rate?
Between £100,000 and £125,140 each extra pound is taxed and also removes 50p of Personal Allowance, which is then taxed as well: 62% with NI. By £125,140 the allowance is gone, so there is nothing left to withdraw and the marginal rate falls to 47%.
Can I avoid the 45% rate?
Salary sacrifice into a pension avoids 45% Income Tax and 2% NI on the amount sacrificed. The annual allowance limits how much you can put in: £60,000, tapered if both your threshold income is over £200,000 and your adjusted income is over £260,000, down to £10,000 at £360,000. Unused allowance from the previous 3 tax years can be carried forward. Gift Aid donations extend your basic and higher rate bands by the grossed-up amount: the charity reclaims basic-rate tax and you claim the difference between that and your own rate through Self Assessment.