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Taxopedia  ›  M  ›  Marginal tax rate
M · Glossary

Marginal tax rate

The tax rate on the next £1 you earn — can be 60%+ for some.

Your marginal tax rate is the tax rate you pay on the next £1 of income. Standard UK marginal rates: 20%, 40%, 45%. But effective marginals can be much higher: 60% in the £100k–£125,140 zone (PA taper), 71%+ for high earners with student loans.

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