PayBreakdown - Salary Calculator & Budget Manager
What is the GBP 100k tax trap?
The GBP 100k tax trap refers to the loss of personal allowance as income rises above GBP 100,000, increasing the effective marginal tax rate.
What this page helps with
The GBP 100k tax trap is shorthand for the personal allowance taper. As income rises above GBP 100,000, the personal allowance can reduce, which makes the effective tax rate on that slice of income higher than the headline higher-rate tax band.
Official sources
Income Tax rates and Personal AllowancesNational Insurance rates and categoriesStudent loan repayment thresholdsPension tax reliefNational Minimum Wage and National Living Wage ratesStatutory Maternity Pay and LeaveStatutory Sick PayFCA guidance on misleading financial promotionsOff-payroll working and IR35 guidanceUnderstanding off-payroll workingSalary sacrifice for employersNHS Employers pay scales 2026/27NHS Health Careers Agenda for Change pay ratesLast updated 2026-05-07. Planning estimates only. Not financial advice.