Additional Rate
The highest income tax rate in England, Wales, and Northern Ireland, charged at 45% on taxable income above £125,140. In Scotland, the top rate is 48% above the same threshold. Income above £100,000 also triggers the Personal Allowance taper, so very high earners lose their tax-free allowance entirely before reaching this band.
Related Terms
Basic Rate
The standard income tax rate of 20% applied to taxable income between the Personal Allowance and the higher-rate threshold, currently £12,571 to £50,270 in England, Wales, and Northern Ireland.
Higher Rate
The income tax rate of 40% applied to taxable income above £50,270 up to £125,140 in England, Wales, and Northern Ireland.
Personal Allowance
The amount of income you can earn in a tax year before paying income tax, currently £12,570 and frozen until April 2028.
Personal Allowance Taper
The gradual withdrawal of the Personal Allowance for people with adjusted net income above £100,000, reducing it by £1 for every £2 of income above that level.
Tax Bands
The ranges of taxable income to which different income tax rates apply, creating the UK's progressive tax system.
Try the calculator
Use our free tool to see how additional rate affects your tax.