More under-40s set for higher tax brackets

Research shows a whopping 20% of under-40s will find more of their earnings going to the taxman due to the freeze on income tax bands.

A businessman climbing a stack of gold coins dragging a ball and chain labelled tax
(Image credit: Getty Images)

The Labour government may have pledged not to increase income tax but many of us will find more of our earnings going to the taxman in the coming years.

A whopping fifth of under-40s will become higher or additional rate income taxpayers by 2028, new research has revealed. The huge increase in higher-rate taxpayers is down to the freeze on income tax bands.

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Ruth Jackson-Kirby

Ruth Jackson-Kirby is a freelance personal finance journalist with 17 years’ experience, writing about everything from savings accounts and credit cards to pensions, property and pet insurance.

Ruth started her career at MoneyWeek after graduating with an MA from the University of St Andrews, and she continues to contribute regular articles to our personal finance section. After leaving MoneyWeek she went on to become deputy editor of Moneywise before becoming a freelance journalist.

Ruth writes regularly for national publications including The Sunday Times, The Times, The Mail on Sunday and Good Housekeeping, among many other titles both online and offline.