Decisions
The £100,000 Tax Trap
For earners near £100,000: see the 60% marginal rate, the childcare you stand to lose, and the pension contribution that takes you back under the line.
Updates live as you type · 2026/27 HMRC rates · Private — stays on your device
Your adjusted net incomeEstimate · 2026/27 HMRC rates · checked April 2026
Adjusted net income is your income after pension contributions — the figure HMRC uses for the £100,000 test.£70,000
£30,000 below the £100k cliffYour adjusted net income is £70,000 — below £100,000, so you're clear of the 60% trap and (if you have children) keep your free childcare hours. The chart below shows where the cliff begins.
Marginal rate across the £100k zone
you ≈ 42%
Combined marginal rate (income tax + NI) on the next £1. The amber band is the 60% trap — getting below £100k restores your personal allowance.
Worth knowing
Why is there a 60% tax trap at £100,000?