How Many People in the UK Earn £100,000 or More?

In the UK, discussions often revolve around various income brackets. This article explores individuals earning £100,000 or more annually.

The Number of High Earners in the UK

Official data from HM Revenue & Customs (HMRC) provides insight into high incomes in the UK. According to HMRC data for the 2022/23 tax year, approximately 1.35 million taxpayers in the UK earned £100,000 or more annually. This represents about 4% of the total UK population.

The number of individuals in higher income brackets has shown an upward trend in recent years. For instance, the number of higher-rate taxpayers, defined as those earning over £50,271, increased by 15.3% between the 2021/22 and 2022/23 tax years, reaching 5.1 million. Similarly, the number of additional-rate taxpayers, earning over £125,140, rose to 600,000 in the 2022/23 period. This growth is partly attributed to “fiscal drag,” where wage increases push more individuals into higher tax bands as income tax thresholds remain frozen.

These statistics generally refer to gross income, which is total earnings before deductions for tax or National Insurance contributions. Individuals earning over £100,000 are required to complete a Self Assessment tax return, providing HMRC with detailed information on income sources like salaries, self-employment profits, property income, or dividends.

Characteristics of High Income Earners

Individuals earning £100,000 or more in the UK often share several demographic and professional characteristics. Age plays a significant role, with high earners concentrated in middle-aged cohorts. Data indicates that the highest median incomes are observed in the 40 to 49 age bracket, signifying that substantial experience and career progression often precede reaching this level of remuneration.

Gender disparities are also evident within this high-income segment. High earners are disproportionately male, and while the overall gender pay gap has seen some reduction, it remains more pronounced among higher-paid employees. This gap tends to widen significantly as careers progress, particularly from around age 30 onwards, with men generally earning more than women in full-time roles across most age groups.

Geographically, there is a clear concentration of high-income individuals in specific regions. London and the South East of England consistently show the highest density of high earners, reflecting the concentration of industries that offer such remuneration. Within London, central areas often contribute to the region’s elevated average income levels.

Certain industries and occupations are more likely to yield incomes of £100,000 or more. Sectors such as finance, technology, and healthcare are examples where specialized expertise commands higher salaries. Occupations frequently associated with this income level include chief executives, surgeons, investment bankers, airline pilots, IT directors, senior roles in data science, specialized engineering fields, and corporate law.

Attaining such income levels often correlates with advanced education, specialized expertise, and extensive professional experience. Many of these roles demand significant leadership responsibilities or highly technical skills acquired over many years. While some high-paying professions may not strictly require a university degree, professional certifications and a proven track record are required for career advancement into the highest earning brackets.

The Significance of a £100k Income

Earning £100,000 annually in the UK positions an individual significantly above the national average. For context, the median gross annual earnings for full-time employees in the UK were approximately £37,430 in April 2024, and the median household disposable income for the financial year ending 2024 was around £36,700. A £100,000 income places an individual among the top earners, within the highest 4-5% of the working population.

The taxation of a £100,000 income in the UK involves several layers. The standard Personal Allowance, which is the amount an individual can earn tax-free, is £12,570. Income above this is taxed at a basic rate of 20% up to £50,270, and then at a higher rate of 40% up to £125,140. Beyond £125,140, the additional rate of 45% applies. A unique aspect for those earning £100,000 or more is the tapering of the Personal Allowance. For every £2 earned above £100,000, the Personal Allowance is reduced by £1, effectively disappearing entirely once income reaches £125,140. This creates an effective marginal tax rate of 60% on the portion of income between £100,000 and £125,140, as the individual pays 40% income tax plus an additional 20% due to the loss of their tax-free allowance. On top of income tax, employees also pay National Insurance Contributions at 12% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270.

While a £100,000 income affords a comfortable lifestyle across most of the UK, its purchasing power can vary considerably by region. Major cities, particularly London, have significantly higher living costs, with housing being a primary expense. Even with a six-figure salary, some individuals in high-cost areas report living “pay cheque to pay cheque,” influenced by factors such as mortgage payments and inflation.

Despite the objective financial standing, many individuals earning £100,000 do not perceive themselves as wealthy. This disconnect can stem from comparisons with peers in similarly high-earning professions or the substantial cost of living in affluent areas. This income bracket contributes significantly to the national tax revenue, playing a considerable role in the overall economic landscape.