How Much Can I Earn Before I Pay 40% Tax in the UK?
Updated July 2026 · 4 min read · Free calculator inside
For the 2026/27 tax year, you start paying the 40% higher rate once your taxable income exceeds £50,270 a year. Below that, income above your personal allowance is taxed at the 20% basic rate. Only the portion of income above £50,270 is taxed at 40% — not your whole salary.
See exactly how much tax you pay at your salary
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Open the Salary Take-Home Calculator →The exact threshold
| Band | Income range | Rate |
|---|---|---|
| Personal allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 – £50,270 | 20% |
| Higher rate | £50,271 – £125,140 | 40% |
| Additional rate | Over £125,140 | 45% |
These are 2026/27 figures for England, Wales and Northern Ireland. Scotland has its own income tax bands.
Only the excess is taxed at 40%
Crossing £50,270 does not mean your whole salary is suddenly taxed at 40%. Only the slice of income above that threshold is taxed at the higher rate — the first £50,270 is still taxed at 0% and 20% as before. Someone earning £55,000 pays 40% only on the £4,730 above the threshold.
Things that can push you into the higher rate unexpectedly
- A pay rise or bonus that tips your annual income over £50,270.
- Combining income from a second job, freelance work or rental income with your main salary.
- Losing part of your personal allowance above £100,000, which raises your effective rate further.
Frequently Asked Questions
Does the 40% threshold change every year?
The government sets it in the Budget and it has been frozen at £50,270 for several years running (a "fiscal drag" freeze), meaning more people cross it each year purely through pay rises and inflation.
Can I avoid paying 40% tax?
You cannot avoid tax on income you keep, but pension contributions and salary sacrifice reduce your taxable income, which can keep you under the threshold or reduce how much falls into the higher band.
Is the 40% threshold the same in Scotland?
No. Scotland sets its own income tax bands and rates, which differ from the rest of the UK — check the Scottish rates separately if you pay tax there.
See exactly how much tax you pay at your salary
Skip the maths — get an instant, up-to-date figure with our free calculator.
Open the Salary Take-Home Calculator →Related Guides
How to Calculate Your Take-Home Pay in the UK
Work out your UK take-home pay for 2026/27 — income tax bands, the £12,570 personal allowance, National Insurance, and what actually lands in your bank account.
Do I Pay Tax on a Bonus in the UK?
Yes — bonuses are taxed exactly like salary in the UK. See how much tax and National Insurance comes off a bonus in 2026/27, with a worked example.
⚠️ Disclaimer: This guide is for general information only and does not constitute financial, tax, or legal advice. Rates and thresholds can change — always check the latest figures on GOV.UK and consult a qualified professional before making decisions.