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A lifetime of income tax… in just four years? Most people probably underestimate just how progressive the UK’s income tax system is. Take someone earning the UK’s median full-time salary of around £39,000. They’ll pay roughly £5,300 a year in income tax. Now compare that with someone earning £150,000. They’ll pay around £53,700. That’s more than 10x as much income tax… …despite earning less than 4x the salary. Over 4 years, the £150,000 earner will have paid approximately £215,000 in income tax. That’s roughly the same amount of income tax the median full-time worker pays across an entire working life. A median full-time worker keeps around 86p of every £1 they earn after income tax. Someone earning £150,000 keeps around 64p of every £1. Many people imagine a £150,000 salary guarantees financial freedom. In reality, many high earners are paying extraordinary amounts of tax while still facing many of the same affordability challenges as everyone else, especially if living and working in London. Whether you think that’s fair or not is a matter of opinion. But it illustrates just how dependent the UK’s income tax system is on higher earners.