Millions More UK Taxpayers Pulled Into the 40% and 45% Bands in 2026/27
HMRC projections put 7.7 million people in the 40% higher-rate band and 1.3 million in the 45% additional-rate band for 2026/27 — both up by about a third since 2023/24. What the thresholds mean for your take-home pay.
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The 45% additional rate of income tax is set to be paid by 1.3 million people in the 2026/27 tax year, according to HMRC projections reported by MoneyWeek.
That additional-rate taxpayer count has risen by 33.8% since 2023/24 (MoneyWeek, 2026). Over the same period, the number of people paying the 40% higher rate of income tax rose by 34% (MoneyWeek, 2026).
The 40% higher rate band applies to earnings between £50,270 and £125,140 and is projected to cover 7.7 million people in the 2026/27 tax year (MoneyWeek, 2026). Below the £50,270 threshold, each pound of taxable earnings is charged at the 20% basic rate; above it, the rate on each additional pound rises to 40%.
The total number of income taxpayers across all UK bands is projected at 40.8 million in the 2026/27 tax year, up from 36.7 million in 2023/24 (MoneyWeek, 2026).
What this means for your income tax
The £50,270 threshold is where the marginal rate on each additional pound of earnings shifts from 20% to 40%. For a salary that crosses that line, only the earnings above the threshold are charged at the higher rate, income below it remains at the basic rate. The income tax calculator applies the correct rate to each slice of income automatically, returning an accurate monthly and annual take-home figure.
The 7.7 million people projected in the higher rate band for 2026/27 is a 34% rise on the 2023/24 figures (MoneyWeek, 2026). For anyone whose earnings sit near or above £50,270, the income tax calculator shows the precise take-home impact of being in the higher rate band rather than the basic rate band. Calculate Your Take-Home Pay →
At £125,140, the rate rises to 45%. With 1.3 million people projected at that level in 2026/27, the additional rate is increasingly common among higher earners. The income tax calculator covers all three rates, basic, higher, and additional, and returns an accurate take-home figure for any UK salary. Calculate Your Income Tax →
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