Calculate Your Tapered Personal Allowance
How to Use This Calculator
Type your total annual income before tax and deductions.
See how much of your £12,570 personal allowance is withdrawn.
Income between £100k-£125,140 is effectively taxed at 60%.
Paying into a pension reduces your adjusted net income below £100k.
Frequently Asked Questions
What is personal allowance tapering?
When your income exceeds £100,000, HMRC withdraws £1 of your personal allowance for every £2 of income above that threshold. This creates an effective 60% marginal tax rate between £100,000 and £125,140.
At what income is the allowance fully withdrawn?
The personal allowance is completely withdrawn when income reaches £125,140 (2025/26). Above this you have no tax-free allowance.
Why is it called the 60% tax trap?
In the £100,000–£125,140 band, you pay 40% income tax normally, plus for every £2 earned you lose £1 of personal allowance (worth 40p in tax). Total = 60p tax per £1 earned.
How can I avoid the 60% tax trap?
Make pension contributions or gift aid donations to reduce your 'adjusted net income' below £100,000. Salary sacrifice pension contributions are particularly effective.
Does this affect my tax code?
Yes. HMRC adjusts your tax code to reflect the reduced personal allowance. You may see a code like 630L instead of 1257L.
Is this the same as the additional rate?
No. The additional rate (45%) applies above £125,140. The 60% trap is specific to the £100k-£125,140 band due to the allowance withdrawal mechanism.
Does tapering apply to Scottish taxpayers?
The personal allowance is set by Westminster and applies UK-wide, but Scottish income tax rates differ above the basic rate band. The 60% trap still exists in Scotland but calculations differ.
What counts as income for tapering?
Your 'adjusted net income' — gross income minus pension contributions, gift aid, and certain other reliefs. Salary sacrifice reduces this figure.