One million more people are expected to pay income tax or move into a higher tax band this year due to the frozen tax thresholds, according to new analysis. The analysis estimates there will be 500,000 more basic-rate taxpayers, 410,000 more higher-rate taxpayers and 70,000 more additional-rate taxpayers this year. The analysis suggests higher-rate taxpayers remain concentrated in London and the South East, which is home to 48% of additional-rate and 35% of higher-rate taxpayers. Find out more: income tax calculatorWhat are the current income tax thresholds? If your employer offers salary sacrifice, pension contributions are made before income tax and National Insurance are calculated, reducing the amount you pay.