UK
The UK personal allowance taper
6 min read · Last updated 1 November 2026 · Tax Globy editorial team
The UK personal allowance is GBP 12,570, but not everyone receives all of it. Above GBP 100,000 it is withdrawn by GBP 1 for every GBP 2 of income, and that withdrawal creates one of the highest marginal rates in the system. This guide explains the taper, the 60% zone and what it means for pension saving.
The allowance and the taper
The personal allowance is GBP 12,570 for 2026-27. Income up to that amount is free of income tax, so it is the first thing to subtract before any band is reached.
Above GBP 100,000 the allowance is withdrawn: it falls by GBP 1 for every GBP 2 of income, and it reaches zero at GBP 125,140. The withdrawal is gradual rather than a single cut, which is what makes the zone unusual.
Why the marginal rate reaches 60%
Between GBP 100,000 and GBP 125,140, an extra GBP 1,000 of income is taxed at 40%, so GBP 400 goes in tax. The same GBP 1,000 also removes GBP 500 of allowance, and that allowance would otherwise have sheltered income taxed at 40%.
The lost relief costs a further GBP 200, so the total is GBP 600 of tax on GBP 1,000 of extra income: 60%. Above GBP 125,140 the allowance is gone and the marginal rate settles at 45%.
| Income (GBP) | Personal allowance (GBP) |
|---|---|
| 100,000 | 12,570 |
| 110,000 | 7,570 |
| 125,140 | 0 |
Run your own numbers
The calculator applies the rates described in this guide and shows the band-by-band breakdown.
Open the United Kingdom calculatorThe bands for 2026-27
England, Wales and Northern Ireland apply three rates above the allowance. The table lists the bands for 2026-27.
The 40% band runs from GBP 50,270 to GBP 125,140, which is the same range in which the allowance is being withdrawn. That overlap is the whole mechanism.
| Income band (GBP) | Rate |
|---|---|
| 12,571 to 50,270 | 20% |
| 50,271 to 125,140 | 40% |
| Above 125,140 | 45% |
Worked example: GBP 110,000
On GBP 110,000 the allowance is reduced by GBP 5,000, from 12,570 to 7,570, because income exceeds GBP 100,000 by GBP 10,000. Taxable income is therefore 102,430.
The first 37,700 of that is taxed at 20%, giving 7,540. The remaining 64,730 is taxed at 40%, giving 25,892. Income tax is 33,432, which is 30.4% of the salary.
Pension contributions in the taper zone
A pension contribution reduces the income that the taper measures, so in this zone it can restore allowance as well as reduce taxable income. Each GBP 1 contributed can reduce the tax bill by about 60p: 40p from the contribution itself and 20p from the allowance it brings back.
That is why the zone is often described as efficient for pension saving. The effect ends at GBP 125,140, and the exact saving depends on how the contribution is made and on the rate that would otherwise apply.
What the taper does not touch
National Insurance is separate. It has its own thresholds and rates and is not affected by the withdrawal of the personal allowance, so the combined marginal cost of extra income in the zone is higher again.
Scotland uses the same allowance but different bands, so the taper arrives at the same income levels with different rates above it. The 60% figure is an income tax figure for England, Wales and Northern Ireland.
Estimates shown before National Insurance and pension contributions.
Checking your own figure
Compare the allowance applied on your payslip with the taper rule. An allowance of 12,570 means the taper has not started; a lower allowance means it has, and twice the shortfall is the income above GBP 100,000.
Round figures help. At GBP 105,000 the allowance is 10,070, at 115,000 it is 5,070, and at 120,000 it is 2,570. A figure outside that pattern suggests a different tax code or a different year.
Common questions
At what income does the allowance disappear?
At GBP 125,140. The allowance falls by GBP 1 for every GBP 2 of income above GBP 100,000, so the 25,140 of extra income removes the whole 12,570.
Is the 60% rate a separate tax band?
No. It is the combined effect of the 40% rate and the withdrawal of allowance. There is no 60% band in the table.
Does the taper affect National Insurance?
No. National Insurance has its own thresholds and rates and is calculated separately from the personal allowance.
Why can a pension contribution be worth more in this zone?
Because it reduces the income that the taper measures, restoring allowance as well as reducing taxable income. That can make each pound contributed worth about 60p of tax.
Written and maintained by the Tax Globy editorial team
Tax Globy is an independent calculator project. Every rate, threshold and deduction is checked against the published official source listed on the page, and each page shows when it was last reviewed.
Last reviewed 1 November 2026 · Estimates only, not tax advice.
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