Marginal tax rate calculator for the UK
Your marginal rate is what the next pound of salary gets taxed at, not the average across everything you earn. Type a yearly gross figure, pick your nation and any student loan, and the tool returns that rate for the 2026/27 tax year with the band-by-band working underneath.
For the 2026/27 UK tax year an extra pound between £100,000 and £125,140 can be taxed at an effective 62%, well above the 40% headline higher rate.
By Mike, the developer behind ukmoneycalc. Every figure here is recomputed in code from the 2026/27 HMRC bands, not typed by hand, and re-checked each week against gov.uk. The marginal rate comes from comparing your take-home at your income against your take-home one pound higher, so stacked traps like the Personal Allowance taper show up instead of a flat headline rate.
The marginal rate scan
This is the part the big calculator sites do not publish. Each row is the effective marginal rate on your next pound at that income, worked out by the take-home delta for England, Wales and Northern Ireland, with a second column adding a Plan 2 student loan on top (9% above £29,385 for 2026/27). Shaded rows are where it climbs past 60%.
| Gross income | Marginal rate | With Plan 2 loan | What is biting |
|---|---|---|---|
| £10,000 | 0% | 0% | Below the Personal Allowance, no income tax yet |
| £12,570 | 28% | 28% | At the Personal Allowance and the NI primary threshold |
| £15,000 | 28% | 28% | Basic rate plus employee NI |
| £25,000 | 28% | 28% | Basic rate plus employee NI |
| £35,000 | 28% | 37% | Basic rate plus employee NI |
| £50,270 | 42% | 51% | Top of the basic band and the NI upper earnings limit |
| £60,000 | 42% | 51% | Higher rate, and the Child Benefit charge starts if you claim it |
| £80,000 | 42% | 51% | Higher rate, Child Benefit fully clawed back if you claim it |
| £100,000 | 62% | 71% | Personal Allowance taper starts, free childcare can drop away |
| £105,000 | 62% | 71% | Inside the Personal Allowance taper |
| £110,000 | 62% | 71% | Inside the Personal Allowance taper |
| £115,000 | 62% | 71% | Inside the Personal Allowance taper |
| £120,000 | 62% | 71% | Inside the Personal Allowance taper |
| £125,140 | 47% | 56% | Personal Allowance gone, additional rate begins |
| £150,000 | 47% | 56% | Additional rate |
| £200,000 | 47% | 56% | Additional rate |
Rates are computed from the 2026/27 income tax, National Insurance and student loan figures cited in Sources below. Switch the calculator to Scotland for Scottish bands.
Where the rate quietly jumps
The scan flags four traps for 2026/27.
- The Personal Allowance taper. Between £100,000 and £125,140 an extra pound is taxed at 40% and also removes 50p of allowance that is itself taxed at 40%, the mechanism behind the effective 60% income tax band. Add the 2% National Insurance on that slice and the effective marginal rate reaches 62%. Economics Observatory ↗
- Student loan stacking. For a graduate still repaying when income crosses £100,000 and the allowance starts to go, the effective marginal rate climbs to 71% with a Plan 2 loan on top. Economics Observatory ↗
- Free childcare loss. Around £100,000 a family that loses free childcare eligibility can face an effective rate well over 100% at that income point, a non-linear cliff outside this engine's scope. Economics Observatory ↗
- The High Income Child Benefit Charge. From £60,000 it claws back 1% of your Child Benefit for every £200 of income over the threshold, reaching the full amount at £80,000. gov.uk ↗
Scotland runs its own bands
England, Wales and Northern Ireland share the same income tax bands, so the toggle that changes the picture is Scotland. For 2026/27 Scotland has six bands and different rates. Scottish Government ↗
| Band | Rate | Applies to income |
|---|---|---|
| Starter | 19% | up to £16,537 |
| Basic | 20% | up to £29,526 |
| Intermediate | 21% | up to £43,662 |
| Higher | 42% | up to £75,000 |
| Advanced | 45% | up to £137,710 |
| Top | 48% | above £137,710 |
Scottish bands from the Scottish Government for 2026/27, assuming the standard UK Personal Allowance of £12,570.
Common questions
What is the highest marginal tax rate in the UK?
For most people the sharpest band is the Personal Allowance taper between £100,000 and £125,140, where income tax is effectively 60%, rising to 62% once National Insurance is added. A graduate repaying a student loan at that point can reach 71%.
Why does my marginal rate reach 60% at £100,000?
Above £100,000 your Personal Allowance is cut by £1 for every £2 of extra income. So an extra pound is taxed at 40% and quietly removes 50p of allowance that is also taxed at 40%. The allowance is fully gone at £125,140.
Does a student loan change my marginal rate?
Yes. Plan 1, 2, 4 and 5 take 9% of income over their threshold and a Postgraduate Loan takes 6%. For 2026/27 the Plan 2 threshold is £29,385, uprated from £28,470 on 6 April 2026.
Is the Personal Allowance the same across the UK?
The standard Personal Allowance for 2026/27 is £12,570, and the 20% basic rate runs on income from £12,571 to £50,270 in England, Wales and Northern Ireland. Scotland sets its own bands.
Sources and disclaimers
- Income tax rates and bands for England, Wales and Northern Ireland gov.uk
- Income over £100,000 and the Personal Allowance taper gov.uk
- Rates and thresholds for employers 2026/27 HMRC
- High Income Child Benefit Charge gov.uk
- Repaying your student loan, what you pay gov.uk
- Student loans, a guide to terms and conditions 2026/27 DfE
- Scottish income tax rates and bands 2026/27 Scottish Government
- Why some people face marginal rates over 60% Economics Observatory
Informational estimates based on 2026/27 HMRC rates, not regulated financial advice.
ukmoneycalc.com is not authorised or regulated by the Financial Conduct Authority.
Tax rates and thresholds change, often each April, always confirm against HMRC before you rely on a figure for a money decision.
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