Who is a 45% tax payer?
A 45% taxpayer is a UK concept — not a US one. For UK residents outside Scotland, this 45% additional rate applies to taxable income over £125,140. In Scotland, the 45% rate applies to the Advanced band. On the other side, income over £125,140 has a 48% tax.
Meanwhile, the highest US federal income tax rate for individuals in 2026 is 37%. Because of this, the IRS does not use the label "45% taxpayer.
Does this term apply in the United States?
No. The IRS does not place individual filers in a 45% bracket. For 2026, the top federal marginal rate for individuals remains 37%. That makes the phrase mostly a UK tax term — even though US readers sometimes use it loosely when talking about high overall tax cost.
Where does the 45% figure actually come from?
It comes from UK income taxation:
| Tax system | Meaning of 45% | When it applies |
|---|---|---|
| UK, outside Scotland | Additional rate | Taxable income over £125,140 |
| Scotland | Advanced rate | Taxable income from £75,001 to £125,140 |
| Scotland | Top rate | 48% over £125,140 |
| U.S. federal | No 45% individual bracket | Top 2026 rate is 37% |
Why do Massachusetts readers ask this?
Taxpayers sometimes confuse foreign rates or federal brackets as well as state-level taxes. If you live in Massachusetts and generate a high income, you might be thinking of the Fair Share Amendment. This rule adds an extra 4% tax on income over the state threshold. It is true that this increases the tax burden. Yet, it still does not place you in a "45% bracket.
How does this connect to Massachusetts millionaires tax planning?
The wrong terminology has the potential to point the tax planning in the wrong direction. In case of living in Massachusetts and expecting a major financial event — like selling a business, receiving a large bonus, or cashing out stock — your attention belongs on the state surtax rules and income timing as well as the residency status. Instead of asking about a 45% bracket, the better question is: "Will this transaction generate the extra Massachusetts surtax?"
How can Dimov Associates help you?
Our team is here to look at the exact financial details, calculate the tax exposure, and assist you in managing the timing, residency rules, and required documentation.