{"id":753,"date":"2025-01-09T07:44:00","date_gmt":"2025-01-09T07:44:00","guid":{"rendered":"https:\/\/www.experlu.co.uk\/dictionary\/?p=753"},"modified":"2025-03-25T06:33:32","modified_gmt":"2025-03-25T06:33:32","slug":"additional-tax-rate","status":"publish","type":"post","link":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/","title":{"rendered":"Additional tax rate"},"content":{"rendered":"\n<p>The additional tax rate is the <strong><a href=\"https:\/\/www.experlu.co.uk\/dictionary\/higher-rate-tax\/\">highest income tax rate<\/a><\/strong> in the United Kingdom. It is due on the income exceeding \u00a3125,140 each tax year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How does income tax work?<\/h2>\n\n\n\n<p>Everyone in the UK who makes more than \u00a312,570 yearly must pay <strong><a href=\"https:\/\/www.experlu.co.uk\/blog\/what-is-income-tax\/\">income tax<\/a><\/strong>. The Personal Allowance is the first \u00a312,570 of income tax-free income.<\/p>\n\n\n\n<p>Take a look at the tax rates for the financial year 2025\/26:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-background\" style=\"background-color:#fcf0ef\"><tbody><tr><td><strong>Income<\/strong><\/td><td><strong>Tax rate<\/strong><\/td><td>&nbsp;<\/td><\/tr><tr><td>Up to \u00a312,570<\/td><td>0%<\/td><td>Personal allowance<\/td><\/tr><tr><td>\u00a312,571 to \u00a350,270<\/td><td>20%<\/td><td>Basic rate<\/td><\/tr><tr><td>\u00a350,271 to \u00a3125,140<\/td><td>40%<\/td><td>Higher rate<\/td><\/tr><tr><td>Over \u00a3125,140<\/td><td>45%<\/td><td>Additional rate<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><br>Additional rate tax example<\/h3>\n\n\n\n<p>On incomes beyond \u00a3125,140 in the 2025\/2026 tax year, the additional rate is 45%. For instance, you are an additional rate taxpayer if your annual income is over \u00a3170,000. Any income over \u00a3125,140 is subject to a 45% tax rate.<\/p>\n\n\n\n<p>In this scenario, that&#8217;s broken down like this:<\/p>\n\n\n\n<p>\u25cf 45% on \u00a344,860<br>\u25cf 40% on \u00a374,870<br>\u25cf 20% on \u00a350,270 (Personal allowance reduced to zero)<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">When do I have to pay the 60% tax?<\/h2>\n\n\n\n<p>When you earn more than \u00a3100,000, you begin to lose your Personal Allowance claim. For every \u00a32 you make beyond \u00a3100,000, you lose \u00a31.<\/p>\n\n\n\n<p>However, you won&#8217;t be taxed at 45% until you earn more than \u00a3125,140, meaning that between \u00a3100,000 and \u00a3125,140, you&#8217;ll be taxed an extra 20% on the Personal Allowances you&#8217;re losing.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The additional tax rate is the highest income tax rate in the United Kingdom. It is due on the income exceeding \u00a3125,140 each tax year. How does income tax work? Everyone in the UK who makes more than \u00a312,570 yearly must pay income tax. The Personal Allowance is the first \u00a312,570 of income tax-free income. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[79],"class_list":["post-753","post","type-post","status-publish","format-standard","hentry","category-uncategorized","tag-additional-tax-rate"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Additional tax rate - Experlu Dictionary<\/title>\n<meta name=\"description\" content=\"Understand the Additional Tax Rate and how it impacts your income. Stay compliant, plan smarter, and optimize your taxes\u2014learn more today!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Additional tax rate - Experlu Dictionary\" \/>\n<meta property=\"og:description\" content=\"Understand the Additional Tax Rate and how it impacts your income. Stay compliant, plan smarter, and optimize your taxes\u2014learn more today!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/\" \/>\n<meta property=\"og:site_name\" content=\"Experlu Dictionary\" \/>\n<meta property=\"article:published_time\" content=\"2025-01-09T07:44:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-03-25T06:33:32+00:00\" \/>\n<meta name=\"author\" content=\"Experlu Admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Experlu Admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/\",\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/\",\"name\":\"Additional tax rate - Experlu Dictionary\",\"isPartOf\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#website\"},\"datePublished\":\"2025-01-09T07:44:00+00:00\",\"dateModified\":\"2025-03-25T06:33:32+00:00\",\"author\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65\"},\"description\":\"Understand the Additional Tax Rate and how it impacts your income. Stay compliant, plan smarter, and optimize your taxes\u2014learn more today!\",\"breadcrumb\":{\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.experlu.co.uk\/dictionary\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Additional tax rate\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#website\",\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/\",\"name\":\"Experlu Dictionary\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.experlu.co.uk\/dictionary\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65\",\"name\":\"Experlu Admin\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g\",\"caption\":\"Experlu Admin\"},\"url\":\"https:\/\/www.experlu.co.uk\/dictionary\/author\/aarifhabeeb\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Additional tax rate - Experlu Dictionary","description":"Understand the Additional Tax Rate and how it impacts your income. Stay compliant, plan smarter, and optimize your taxes\u2014learn more today!","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/","og_locale":"en_GB","og_type":"article","og_title":"Additional tax rate - Experlu Dictionary","og_description":"Understand the Additional Tax Rate and how it impacts your income. Stay compliant, plan smarter, and optimize your taxes\u2014learn more today!","og_url":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/","og_site_name":"Experlu Dictionary","article_published_time":"2025-01-09T07:44:00+00:00","article_modified_time":"2025-03-25T06:33:32+00:00","author":"Experlu Admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Experlu Admin","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/","url":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/","name":"Additional tax rate - Experlu Dictionary","isPartOf":{"@id":"https:\/\/www.experlu.co.uk\/dictionary\/#website"},"datePublished":"2025-01-09T07:44:00+00:00","dateModified":"2025-03-25T06:33:32+00:00","author":{"@id":"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65"},"description":"Understand the Additional Tax Rate and how it impacts your income. Stay compliant, plan smarter, and optimize your taxes\u2014learn more today!","breadcrumb":{"@id":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.experlu.co.uk\/dictionary\/additional-tax-rate\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.experlu.co.uk\/dictionary\/"},{"@type":"ListItem","position":2,"name":"Additional tax rate"}]},{"@type":"WebSite","@id":"https:\/\/www.experlu.co.uk\/dictionary\/#website","url":"https:\/\/www.experlu.co.uk\/dictionary\/","name":"Experlu Dictionary","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.experlu.co.uk\/dictionary\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/99453619ad21037bc151f20b15dd3f65","name":"Experlu Admin","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/www.experlu.co.uk\/dictionary\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/608c6b42c554f626552cb49dd92abf957a2dae9b6577cca2f3c9db4b300fcaa0?s=96&d=mm&r=g","caption":"Experlu Admin"},"url":"https:\/\/www.experlu.co.uk\/dictionary\/author\/aarifhabeeb\/"}]}},"_links":{"self":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts\/753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/comments?post=753"}],"version-history":[{"count":4,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts\/753\/revisions"}],"predecessor-version":[{"id":1096,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/posts\/753\/revisions\/1096"}],"wp:attachment":[{"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/media?parent=753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/categories?post=753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.experlu.co.uk\/dictionary\/wp-json\/wp\/v2\/tags?post=753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}