Marginal tax rate (UK)
rates verified 24 Jul 2026 · next refresh after Autumn Statement
Direct answer
Marginal tax rate is the rate applied to the next pound of income. UK income-tax marginal rates for 2026/27 are 0% (up to £12,570), 20%, 40%, then 60% from £100,000 to £125,140, then 45%15. National Insurance adds 8% to £50,270 and 2% above. Effective rates differ – those are averages over total income.
Marginal rate at common salaries (rUK 2026/27)
| Gross salary | Income tax | NI | Combined marginal |
|---|---|---|---|
| £15,000 | 20% | 8% | 28% |
| £40,000 | 20% | 8% | 28% |
| £60,000 | 40% | 2% | 42% |
| £110,000 | 60% | 2% | 62% |
| £200,000 | 45% | 2% | 47% |
Why marginal can exceed band rate
Marginal rate stacks every charge a fresh pound triggers: income tax, NI, the £100k taper, student loan repayment thresholds. The IFS measures these as effective marginal tax rates (EMTR) and finds the UK's curve runs from 28% to over 70% at certain interaction points35.