UK Marginal Tax Rate & Household Tax Calculator
Model your real marginal tax rate across all statutory bands. Discover how the £100,000 personal allowance taper, £100k childcare cliff edge, and High Income Child Benefit Charge (HICBC) impact your take-home pay, with single or dual-earner couple optimization.
Calculate your true marginal rate across the 60% taper, £100k childcare cliff, and Child Benefit clawback.
Standard Tax Assessment (Current Baseline)
Your Details & Income
Capped at the £60,000 annual pension allowance, while keeping cash pay above the legal minimum wage floor (£24,785/yr).
Children & Dependents(Optional)▸
Your Tax Summary
Enter salary to view net take-home and marginal rates.Enter your salary to see your exact take-home pay, view tax sliced by bracket, and check whether the £100,000 allowance taper or childcare cliff applies to you.
Childcare & Family Benefits (Optional / As Applicable) ▸
Statutory Childcare Act cliff: If either parent's Adjusted Net Income exceeds £100,000, 100% of funded nursery hours and Tax-Free Childcare are lost.
HMRC clawback: Assessed on the lead earner at 1% per £200 between £60,000 and £80,000. Incomes above £80,000 face the full 100% tax charge (ITEPA 2003 s 681B).
Enter annual salary above to unlock pension optimization
Tax Optimization & Pension Simulator
Spendable Budget & Wealth Allocation
Take-home cash flow & pension wealth comparison before and after sacrifice
Simulate Pension Contributions
Salary Sacrifice & SIPP Modeler
No additional salary sacrifice headroom available.
Spendable Budget & Wealth Allocation
Take-home cash flow & pension wealth comparison before and after sacrifice
Household Financial Summary
BaselineBased on £0 gross · Comparing spendable cash against long-term pension savings
Frequently Asked Questions & Tax Legislation
3FAQs & Tax Legislation▼
Frequently Asked Questions
What is the UK 60% tax trap?▼
Under Section 35 of the Income Tax Act 2007, you lose £1 of your £12,570 tax-free Personal Allowance for every £2 of income over £100,000. Because that £1 is no longer tax-free, it is taxed at the 40% higher rate. This adds an effective 20% tax onto your 40% rate, creating a 60% marginal income tax rate between £100,000 and £125,140 (or 62% including 2% National Insurance).
How does salary sacrifice eliminate the 60% tax rate?▼
Contributing to a registered pension scheme lowers your statutory Adjusted Net Income under ITA 2007 s 58. For example, if you earn £115,000 and sacrifice £15,000 into your workplace pension, your adjusted income drops to £100,000. Your full £12,570 personal allowance is restored, saving £9,000 in income tax (60% relief) while the full £15,000 goes straight into your pension pot.
What is the £100,000 free childcare cliff edge?▼
Under the Childcare Payments Act 2014, eligibility for 30 hours funded nursery and Tax-Free Childcare stops completely if either parent earns £1 over £100,000 in adjusted net income. Unlike income tax, there is no gradual taper. Earning £100,001 immediately disqualifies your household from up to £2,000/year per child in Tax-Free Childcare plus thousands in funded nursery hours.
What happens to National Insurance and the tax trap at State Pension age?▼
Under Section 6(1) of the Social Security Contributions and Benefits Act 1992, employees past UK State Pension age are exempt from Class 1 National Insurance. Within the £100,000 to £125,140 Personal Allowance taper, your marginal rate is exactly 60% (40% income tax plus 20% allowance taper, with 0% National Insurance). State Pension age is currently 66, rising to 67 between 2026 and 2028.
Can my spouse or civil partner transfer unused allowance to me?▼
Yes, if you pay basic-rate tax. Under Section 55B of the Income Tax Act 2007, Marriage Allowance lets a partner earning under £12,570 transfer 10% (£1,260) of their Personal Allowance to you, cutting your annual tax bill by £252. To qualify, you must earn under £50,270 (or £43,662 in Scotland). Because Marriage Allowance is a flat tax credit claimed directly with HMRC rather than an adjustment to your salary or tax bands, it is not included in your calculated take-home total above.
How do annual bonuses or commissions affect the tax trap?▼
Bonuses, commissions, and performance incentives are treated as employment earnings and counted toward your Adjusted Net Income. If a bonus pushes your income above £60,000 or £100,000, you will trigger Child Benefit clawback or the 60% tax trap. Many employers allow "bonus sacrifice", letting you redirect all or part of your bonus directly into your pension before tax to keep your income below these thresholds.
Can paying into a pension actually leave me with more take-home cash?▼
Yes, if you have children under 4 in nursery. Under UK childcare rules, earning £1 over £100,000 immediately cancels your 30 hours of funded childcare and Tax-Free Childcare, which can cost you £5,000 to £10,000+ a year in nursery fees. If you earn £102,000 and put £2,000 into a pension, your Adjusted Net Income falls back to £100,000. That restores your full free childcare hours and gives you 60% tax relief on the contribution. Because your nursery savings far outweigh the small drop in your monthly pay, your household ends up with more usable cash in the bank.
Statutory Authority & Primary Legislation
Governs the Personal Allowance taper. For every £2 of adjusted net income over £100,000, £1 of allowance is withdrawn, creating the 60% marginal income tax rate.
Defines Adjusted Net Income (ANI). Confirms that pension contributions (workplace or personal SIPP) and Gift Aid donations reduce your taxable income back below £100,000.
Establishes the strict £100,000 single-earner income cap under Section 6 for 30 hours funded nursery places and Tax-Free Childcare accounts.
Exempts workers who have reached State Pension age from paying Class 1 Employee NIC, eliminating the National Insurance component in the marginal rate.
Frequently Asked Questions
What is the UK 60% tax trap?▼
Under Section 35 of the Income Tax Act 2007, you lose £1 of your £12,570 tax-free Personal Allowance for every £2 of income over £100,000. Because that £1 is no longer tax-free, it is taxed at the 40% higher rate. This adds an effective 20% tax onto your 40% rate, creating a 60% marginal income tax rate between £100,000 and £125,140 (or 62% including 2% National Insurance).
How does salary sacrifice eliminate the 60% tax rate?▼
Contributing to a registered pension scheme lowers your statutory Adjusted Net Income under ITA 2007 s 58. For example, if you earn £115,000 and sacrifice £15,000 into your workplace pension, your adjusted income drops to £100,000. Your full £12,570 personal allowance is restored, saving £9,000 in income tax (60% relief) while the full £15,000 goes straight into your pension pot.
What is the £100,000 free childcare cliff edge?▼
Under the Childcare Payments Act 2014, eligibility for 30 hours funded nursery and Tax-Free Childcare stops completely if either parent earns £1 over £100,000 in adjusted net income. Unlike income tax, there is no gradual taper. Earning £100,001 immediately disqualifies your household from up to £2,000/year per child in Tax-Free Childcare plus thousands in funded nursery hours.
What happens to National Insurance and the tax trap at State Pension age?▼
Under Section 6(1) of the Social Security Contributions and Benefits Act 1992, employees past UK State Pension age are exempt from Class 1 National Insurance. Within the £100,000 to £125,140 Personal Allowance taper, your marginal rate is exactly 60% (40% income tax plus 20% allowance taper, with 0% National Insurance). State Pension age is currently 66, rising to 67 between 2026 and 2028.
Can my spouse or civil partner transfer unused allowance to me?▼
Yes, if you pay basic-rate tax. Under Section 55B of the Income Tax Act 2007, Marriage Allowance lets a partner earning under £12,570 transfer 10% (£1,260) of their Personal Allowance to you, cutting your annual tax bill by £252. To qualify, you must earn under £50,270 (or £43,662 in Scotland). Because Marriage Allowance is a flat tax credit claimed directly with HMRC rather than an adjustment to your salary or tax bands, it is not included in your calculated take-home total above.
How do annual bonuses or commissions affect the tax trap?▼
Bonuses, commissions, and performance incentives are treated as employment earnings and counted toward your Adjusted Net Income. If a bonus pushes your income above £60,000 or £100,000, you will trigger Child Benefit clawback or the 60% tax trap. Many employers allow "bonus sacrifice", letting you redirect all or part of your bonus directly into your pension before tax to keep your income below these thresholds.
Can paying into a pension actually leave me with more take-home cash?▼
Yes, if you have children under 4 in nursery. Under UK childcare rules, earning £1 over £100,000 immediately cancels your 30 hours of funded childcare and Tax-Free Childcare, which can cost you £5,000 to £10,000+ a year in nursery fees. If you earn £102,000 and put £2,000 into a pension, your Adjusted Net Income falls back to £100,000. That restores your full free childcare hours and gives you 60% tax relief on the contribution. Because your nursery savings far outweigh the small drop in your monthly pay, your household ends up with more usable cash in the bank.
Statutory Authority & Primary Legislation
Governs the Personal Allowance taper. For every £2 of adjusted net income over £100,000, £1 of allowance is withdrawn, creating the 60% marginal income tax rate.
Defines Adjusted Net Income (ANI). Confirms that pension contributions (workplace or personal SIPP) and Gift Aid donations reduce your taxable income back below £100,000.
Establishes the strict £100,000 single-earner income cap under Section 6 for 30 hours funded nursery places and Tax-Free Childcare accounts.
Exempts workers who have reached State Pension age from paying Class 1 Employee NIC, eliminating the National Insurance component in the marginal rate.