effectivetax.co.uk

Know your real take-home, marginal tax rate and how to save tax.

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Take-home

£0

£0 real gross (including bonus and benefits)

Clear · 0% marginal

	Year	Month
Take-home	£0	£0
Income Tax	£0	£0
National Insurance	£0	£0

Effective tax rate: 0.0%
Taxable income: £0
Tax code: 1257L
Personal Allowance: £12,570

Updates as you type

Your effective tax rate

Your current tax rate with where you sit against the 62% trap.

What is your effective tax rate?

Your effective tax rate is the share of your total pay that goes to tax.

It is lower than your marginal rate, the tax on your next pound. For example, a £60,000 salary has a marginal rate of 42% but an effective rate of about 24%.

This calculator shows both rates for any salary.

Read effective rate versus marginal rate

The £100,000 tax trap and the 60% rate

Between £100,000 and £125,140, every extra pound you earn is taxed at 60%.

For every £2 you earn above £100,000, you lose £1 of your Personal Allowance. That lost allowance is taxed as well, so your marginal rate rises from 40% to 60%. National Insurance takes it to 62%.

This is why earning just above £100,000 can leave you barely better off. If you also lose free childcare, you can end up worse off.

See the £100,000 tax trap explained

How to pay less tax legally

You can pay less tax by lowering the income your tax is based on. This figure is your adjusted net income.

Pension contributions, salary sacrifice and Gift Aid all reduce it.

In the £100,000 trap, a pension payment can win back your lost Personal Allowance. Enter a pension or Gift Aid amount above to see the effect on your take-home pay.

Read how to save tax legally

Based on current HMRC rates.