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What is £100,000 after tax?

  • 2 min read
  • Last updated 11 Sep 2023

You might be surprised by what’s left of £100,000 after tax. 

Of course, it’s still a handsome wage, but what many people don’t know is that when you start earning over £100k, you fall into a 60% tax trap. You gradually lose your tax-free Personal Allowance (which is £12,570 in the 2023/24 tax year). And until you earn £125,140 and lose it entirely, you’ll be paying tax at 60% on your income. 

Look, it’s confusing, we know. We’ve written a guide about how it works so take a look to see an example of 60% tax in action.

How much is £100,000 after tax?

You can calculate your earnings by using our Income Tax calculator. Just input a few details and we can calculate the tax you owe and the wage you’re left with after:

Your situation

Outlined number oneOutlined number one
I am
Annual self-employed income
Self-employed expenses

Tax and profit

Outlined number two
  • Total earnings
    £1,000 tax-free Trading Allowance
  • Tax to pay
    £7,286 income tax
    £159 class 2 National Insurance
    £3,549 class 4 National Insurance
  • What you’re left with

How your income tax is calculated

When you’re self-employed, you have to pay your income tax and national insurance contributions yourself in your annual Self Assessment. Our calculator helps you quickly assess how much you owe.

However you may be eligible for a tax refund when:

  1. You already made tax payments for the year but your annual income ended up less than planned
  2. You have done things that qualify for a tax relief (made private pension contributions, given to charity, etc.)

In your case when you earn £50,000:

Income tax breakdown

You pay no income tax on first £12,570 that you make

You pay £7,286 at basic income tax rate (20%) on the next £36,430

National insurance contributions breakdown

No contributions on the first £9,568 that you make

You pay £3,549 in contributions (at 9%) on the next £39,432 that you make

You pay £159 in NI Class 2 contributions

What to do if you earn over £100k?

When you earn over £100k, you’ll be classed as a high earner. But, it’s not until you earn over £150K that you’ll need to do a tax return. HMRC will need to check that you’re being taxed the correct amount. To do this, they look at what’s known as your Adjusted Net Income. It’s basically another way of describing your total taxable income. 

HMRC check whether you’re claiming any reliefs that reduce your taxable income, and whether you’re entitled to your Personal Allowance. 

To do your tax return, you should first register for Self Assessment if you’ve not had to do it before.

If you owe any money, you should pay before 31st January in any given tax year

Take a look at this step-by-step guide to help you with your first tax return

But, if you’re a high earner with an income under £150,000, you should still make sure to contact HMRC to ensure you’re on the correct tax code!

Want to test your tax knowledge?

Take our high-earner quiz and see whether you’re a tax whizz or need to brush up on a few concepts. 🤓

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