Nearly two million people in the UK have moved into the higher-rate income tax band since the start of the decade, new figures show.
A total of 5.76 million individuals were paying the higher rate in the 2023/24 tax year, according to HM Revenue and Customs.
This is up 50% from 3.83 million in 2019/20.
Some 654,000 people were added to the higher-rate band between 2022/23 and 2023/24, a year-on-year jump of 13%.
HMRC acknowledged the rise is “likely to be due to the unchanged higher rate threshold and increases in income, largely from employment, resulting in more taxpayers being brought into the higher rate of tax.”
The level at which people start paying the higher rate of income tax of 40% has been frozen at £50,271 since 2021/22.
Tax thresholds typically used to rise in line with inflation, but the freeze – introduced by the previous Conservative government – has seen more people dragged into the higher bracket as their earnings have grown.
Chancellor of the Exchequer Rachel Reeves announced at the Budget in November 2025 that the freeze will continue until 2030/31, meaning more people are likely to experience so-called “fiscal drag” and find themselves paying the higher rate.
HMRC’s figures show that higher-rate payers made up 15.7% of all UK taxpayers in 2023/24, nearly one in six, up from 12.2% in 2019/20, or around one in eight.
Higher-rate payers accounted for 32.0% of the total amount raised by the Government from income tax in the year to March 2024.
There were 29.40 million basic rate taxpayers in 2023/24, up nearly three million from 26.50 million in 2019/20.
The number of basic rate taxpayers jumped by 1.15 million between 2022/23 and 2023/24.
HMRC said this rise was “driven by the personal allowance remaining unchanged at £12,570 alongside rising incomes, which has increased the amount of income taxed at the basic rate and brought more individuals into paying income tax”.
A freeze in the personal allowance threshold – which means income up to £12,750 is not taxed – has been in place since 2021/22 and is due to remain until 2030/31.
Basic-rate payers accounted for 29.9% of the total raised by the Government in 2023/24, slightly lower than the figure of 32.0% for higher-rate payers.
The number of people paying the additional rate of income tax jumped sharply year-on-year from 570,000 in 2022/23 to 893,000 in 2023/24, an increase of 57%.
The additional tax rate of 45% applies to earnings over £125,140.
These 893,000 additional-rate payers made up just 2.4% of all taxpayers in 2023/24 but accounted for 37.7% of tax raised.
Responding to the figures, a Treasury spokesperson said: “More people are paying higher rates of tax because thresholds have been frozen while wages rise – a policy we inherited.
“At the last budget we acted to ease pressures on working people by increasing the national minimum wage, taking £150 off energy bills, and freezing prescription charges, fuel duty and rail fares.
“And we are keeping our promise not to raise the basic, higher or additional rates of income tax, employee national insurance or VAT.”
Maike Currie, vice-president of personal finance at PensionBee, said: “Freezing thresholds until the 2030/31 tax year is the biggest stealth tax in the system – quietly pulling teachers, nurses and mid-level professionals into the 40% tax bracket.
“Since the higher-rate threshold was frozen, inflation and wage growth have done the heavy lifting for the Treasury.
“The tax system hasn’t become more complicated overnight, but it has become less forgiving. Small income changes can disproportionately affect your take-home pay, making planning essential.
“Pensions, Isas and salary sacrifice are vital tools for managing tax and avoiding a drift into higher bands – for many, these will be the difference between drifting into a higher tax bracket and consciously deciding how and when income is taxed.”
Sarah Coles, head of personal finance at AJ Bell, said: “Almost eight million people relying on their pension for their main source of income are handing over £24 billion in tax every year – nearly half a million of whom are paying higher-rate tax.
“Meanwhile, higher earners are shouldering an incredibly hefty tax burden, with higher and additional-rate taxpayers handing over almost 70% of all tax between them.
“Frozen tax thresholds mean this is only going to get worse for everyone.
“In this environment, it’s vital to make plans to ensure you don’t pay more than your fair share of tax.”