Around 77,000 pensioners are now caught in a “punishing” 60% tax trap, according to new figures obtained through a Freedom of Information (FOI) request. An increasing number of elderly Brits are being pushed into higher tax brackets due to a combination of the triple lock policy and the freezing of income tax thresholds.

The FOI request revealed that thousands of people aged 66 and over paid an effective 60% income tax rate in 2024/25. They earned between £100,000 and £125,140, which put them in one of the highest tax brackets. The figure of 77,000 is more than double the 34,000 retirees impacted by the 60% tax in 2021/22. It comes amid rumours Rachel Reeves could enforce a 2p increase on income tax as she targets wealthy Brits in her upcoming Autumn Budget.

As reported by GB News, the 60% tax trap is triggered when someone earns over £100,000. Their personal allowance, the amount they can earn tax-free, begins to shrink from this point.

For every £2 earned over the £100,000 threshold, £1 of the £12,570 allowance is removed. The allowance then disappears completely when income reaches £125,140, meaning people in that range effectively pay 60% tax on part of their income.

Experts are warning that more pensioners could be caught by the tax if thresholds are not adjusted for inflation. Many Brits now work well into their late 60s, particularly those reaching career peaks on high salaries.

The full new state pension is set to increase £573 a year to £12,547 from April 2026 under the triple lock mechanism. This could see thousands of pensioners who are still working see 60% of this rise swallowed up in tax.

Craig Rickman, pensions expert at interactive investor, warned: “This data reveals the punishing impact of the 60% tax trap on older workers, as frozen tax thresholds pull more pensioners’ incomes into six-figure territory.

“If the tax-trap threshold had kept pace with inflation, workers would now be able to earn £155,000 before being hit with 60% income tax.

“With the deep freeze on income tax bands set to endure until 2028/29, and fears the Government could extend it even further, thousands more people above state pension age will be hit with punitive rates of tax on some of their income.”

He added: “However, there’s a risk that ultra-high tax rates could mean losing older talent.” He is suggesting that some people may choose to reduce their workload rather than face heavy taxation.