Your details
Your true marginal tax rate
On your next £1 earned at £50k
Marginal rate across all incomes
Dashed line: your salary. Hover for breakdown at any income.
What is marginal tax rate?
It's the rate you pay on your next £1 of income — not your average rate. When you cross a threshold (e.g. higher rate, or losing Personal Allowance), your marginal rate can jump well above 45%.
Why does it hit 60% between £100k and £125k?
Between £100,000 and £125,140 your Personal Allowance is reduced by £1 for every £2 of income. That creates an effective 60% marginal rate on that slice (40% income tax plus 20% from the lost allowance). Pension contributions or Gift Aid can lower your adjusted net income and keep you below the trap.
Read more about the 60% tax trapHow student loans stack on top
Plan 2 and most undergraduate plans add 9% on income above their threshold; Plan 3 (postgraduate) adds 6%. So in the 60% taper zone with a Plan 2 loan, your true marginal rate can exceed 70%.
Compare salary sacrifice vs relief at sourceChild benefit charge adds even more
The High Income Child Benefit Charge (HICBC) tapers between £60,000 and £80,000 — you lose 1% of your child benefit for every £200 over £60k. That adds several percentage points to your marginal rate if you have children.
HICBC calculatorSpotted an error or have a suggestion? Let us know — we read every message.