- For the tax year 2026 to 2027, an estimated 18.9 million income taxpayers are women and 21.9 million are men – that’s a split of 46.3% women and 53.7% men (source: Income Tax liabilities statistics: tax year 2023 to 2024 to tax year 2026 to 2027 - GOV.UK)
- Over the past decade the number of men paying tax has risen by 4 million (22%) and the number of women by 5.6 million (42%)
- As a result, the percentage of taxpayers made up by men has dropped from 57.4% to 53.7%
- Part of this is the gender pay gap narrowing, but some of it comes down to frozen tax thresholds
- And there are signs women aren’t taking the same steps as men to cut their tax bills
Sarah Coles, head of personal finance at AJ Bell, comments:
“Closing a gender gap is usually a cause for celebration, but when it comes to the gender tax gap, it’s a far more mixed blessing – and not just because it means more women handing over their hard-earned money to the taxman.
“The gender tax gap is closing. More men still pay income tax – making up just under 54% of all income taxpayers. However, 10 years earlier they accounted for over 57% of all income taxpayers, so women are catching up. In fact, while the number of men paying tax rose 22% in that time, the number of women paying it was up 42%.
“In some respects, this is a positive development because it reflects the fact the gender pay gap has been narrowing. In 2025 it was 7% for full time employees and 13% for all employees, according to the ONS. Ten years earlier it was 10% for full time employees and 19% for all employees.
“However, this isn’t the full picture. The rise in female taxpayer numbers represents huge numbers crossing the threshold of the personal allowance, and in recent years, this is often simply because they have been dragged into paying tax by frozen tax thresholds. They might only have had a pay rise that helps them keep pace with inflation, so they’re no better off, but by crossing the threshold they qualify for the dubious honour of being a taxpayer.
Pensions gap
“To make matters worse, there are signs that women aren’t taking the same steps as men to cut their tax bill. The number of women with pensions isn’t dramatically different to the number of men, thanks to the fact that so many are automatically enrolled into their workplace pension. As a result, 78% of women around the age of 55 had pensions wealth in 2020/22, compared to 82% of men. However, the amount they hold is significantly different. The average held in pensions in 2020/22 among those aged 55 to 59 was £81,000 for women and £156,000 for men. So the gender pension gap is estimated at 48%.
“In fact, research by AJ Bell Money Matters shows that the gender pension gap starts at age 28. This is linked to the fact women are more likely to take career breaks for caring responsibilities, and pension contributions slip down the pecking order. It’s a crucial time in their lives as younger women could miss out on the power of investment growth over a longer timeframe.
“Solutions aren’t easy, so much of the problem is structural. However, if you pay into a pension at work, check if they will match extra contributions, which is a brilliant way of super-charging your efforts to save into a pension. If you have children, try not to stop paying into your pension during your maternity leave. If you can keep up payments, you only have to pay a percentage of the actual maternity pay you’re getting, while your employer needs to keep making the same contributions as before, so you get far more bang for your buck.
“Then if you stop work for a period or move into a part-time role for caring responsibilities, talk to your partner about the implications for your pension. You will already be having conversations around how you will pay vital bills between you – usually including the mortgage – so it’s worth adding your pension to your conversation.
“If you can’t afford higher contributions today, pledge to pay more in when you get a pay rise or work longer hours. One way to make sure this happens automatically is to work on the basis of paying in a certain percentage of salary - so it automatically rises when your income does.
Investment gap
“The figures around ISAs seem more positive on initial glance. The most recent government figures (2022/23) show women make up the majority of people paying into their ISA. Women made 51.6% of all ISA subscriptions. However, they are heavily weighted towards cash: women paid into 56% of Cash ISAs, but only 42% of Stocks and Shares ISAs.
“AJ Bell Money Matters research in 2025 showed that among AJ Bell customers, women start off their financial lives with healthy Stocks and Shares ISA contributions and slightly higher average balances than their male counterparts. But the gap between the amount that men and women have in Stocks and Shares ISAs on the AJ Bell platform reaches 46% when people are in their thirties.
“Closing the gap on tax-efficient investing isn’t straightforward, because hesitance owes a great deal to the gender pay gap and less secure incomes, which may lead some to feel they can’t afford the risks they associate with investment. There is risk involved, but it’s vital not to over-estimate the risk of investment losses and underestimate the risk that the value of cash can be eroded by inflation over time. Getting to grips with the reality can make a huge difference. Making small regular investments can build both wealth and experience over time. You can start investing from as little as £25 a month and investing gradually can increase confidence as well as long-term financial resilience.”
