Marginal tax rate
The share of your next pound of income that does not reach you.
Why it matters
It is the number that answers whether a raise, a bonus, overtime or a second job is worth it. In the UK it ranges from 28 per cent to 71 per cent depending on where you sit.
Where you will see it
It never appears on a payslip. It has to be worked out, and it is the single most useful number for anyone making a decision about money.
What people get wrong
The mistake is assuming it equals your tax band. Add National Insurance, a student loan and a tapering allowance and a 40 per cent band can be a 71 per cent marginal rate.
What it looks like in numbers
| Salary | Income tax | National Insurance | Take-home | A month | Effective rate |
|---|---|---|---|---|---|
| £25,000 | £2,486 | £994 | £21,520 | £1,793 | 13.9% |
| £35,000 | £4,486 | £1,794 | £28,720 | £2,393 | 17.9% |
| £50,000 | £7,486 | £2,994 | £39,520 | £3,293 | 21.0% |
| £75,000 | £17,432 | £3,510 | £54,058 | £4,505 | 27.9% |
| £110,000 | £33,432 | £4,210 | £72,358 | £6,030 | 34.2% |
Every figure above is computed from the published 2026/27 rates by the same engine that runs the calculators on this site, so the number in a table and the number in a calculator can never disagree. There is a fuller explanation here.
And the marginal rate, which is usually the point
| Salary | England, Wales, NI | Scotland | With a Plan 2 loan |
|---|---|---|---|
| £25,000 | 28.0% | 28.0% | 28.0% |
| £35,000 | 28.0% | 29.0% | 36.4% |
| £50,000 | 38.2% | 45.6% | 47.8% |
| £60,000 | 42.0% | 44.0% | 51.6% |
| £105,000 | 62.0% | 69.5% | 70.4% |
The same salary, by pay frequency
| Paid | Gross | Income tax | National Insurance | Take-home |
|---|---|---|---|---|
| Yearly | £45,000.00 | £6,486.00 | £2,594.40 | £35,919.60 |
| Monthly | £3,750.00 | £540.50 | £216.16 | £2,993.34 |
| 4-weekly | £3,461.54 | £498.92 | £199.48 | £2,763.13 |
| Fortnightly | £1,730.77 | £249.46 | £99.74 | £1,381.57 |
| Weekly | £865.38 | £124.73 | £49.87 | £690.78 |
Income tax across a full year is the same whichever row you are on. National Insurance is not quite, because it is worked out on each pay period in isolation rather than cumulatively — which is a small effect on steady pay and a larger one on irregular hours.
Related terms
| Term | What it means |
|---|---|
| Effective tax rate | Total tax and National Insurance as a share of your gross pay across the year. |
| Salary sacrifice | An arrangement where you give up part of your contractual salary and your employer pays the equivalent into a pension or a benefit instead. |
| Net pay arrangement | A pension arrangement where your contribution is taken before income tax is worked out, giving you full relief at your marginal rate immediately. |
| Relief at source | A pension arrangement where you pay 80 per cent of the contribution out of taxed pay and the provider reclaims the other 20 per cent from HMRC. |
Questions people actually ask
What does marginal tax rate mean?
The share of your next pound of income that does not reach you.
Where does marginal tax rate show up on my payslip?
It never appears on a payslip. It has to be worked out, and it is the single most useful number for anyone making a decision about money.
Figures on this page are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and were last checked on 29 August 2026. Every rate we use is listed on the sources page.