Higher-rate threshold (UK)
The UK income level at which the 40% higher-rate income-tax band begins — £50,270 for 2025/26.
The higher-rate threshold is the gross-income level at which UK income tax steps from the basic 20% rate to the higher 40% rate. For 2025/26 it sits at £50,270 — the same nominal level since 2021/22 because the threshold is frozen alongside the Personal Allowance through 2027/28.
The threshold is the SUM of the Personal Allowance (£12,570) plus the basic-rate band (£37,700). Pension contributions paid net (relief-at-source) shift the threshold up by the gross amount of the contribution — a £2,880 net contribution becomes a £3,600 gross extension, pushing the threshold to £53,870 for that earner. Salary sacrifice lowers gross pay so the threshold matters less.
National Insurance Class 1 also steps DOWN at this same threshold — from 8% to 2% on the slice above. So the combined marginal rate above £50,270 is 40% + 2% = 42%, not the headline 40%.
Calculator pages that use this term
See also
- Personal Allowance (UK) — The slice of annual UK income that is not subject to income tax — £12,570 for 2025/26.
- PAYE (Pay As You Earn) — The UK system for collecting income tax + National Insurance directly from payroll each month.
- National Insurance (UK) — The UK's second payroll tax — funds the state pension, NHS, and unemployment benefits.
- Marginal tax rate — The percentage paid in tax on the next unit of income earned — distinct from the average effective rate.