Tag: Marginal Rates - Tax Policy Associates

Posts tagged "Marginal Rates"

Nov 12, 2025 Policy

The Budget 2025 tax calculator

This online calculator calculates your tax on employment, self-employed or partnership income, and shows how it changes under a variety of Budget proposals. It charts the marginal and effective tax rate at all income levels, and shows where you fall on that chart. Now updated for the actual Budget, with rates for 2026/27 rates and […]

Oct 17, 2024 Policy

How to reform income tax: end the high marginal rate scandal

It is a national scandal that teachers, doctors and others earning fairly ordinary salaries can face marginal tax rates of more than 60%, and sometimes approaching 80%. It’s inequitable and holds back growth. Rachel Reeves should commit to ending these anomalies. This Government was elected on a platform of kickstarting economic growth. It has a […]

Jun 18, 2024 Analysis

What are marginal rates? And why do they matter?

We keep talking about marginal rates, but rarely stop to explain exactly what they are, and why they matter. Here’s a short explainer, to accompany our interactive marginal rate charts. There is an updated article on marginal rates here. The marginal rate is the percentage of tax you’ll pay on your next £1 of income. […]

Marginal tax rate on next £ (IT, employee NICs and child benefit charge)

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UK marginal tax rate for single earner, family of 3 kids

£20,000

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£60,000 £80,000 £100,000 £120,000
Gross salary (single earner in household with three children}

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Nov 20, 2023 Analysis

What’s worse than a 71% marginal tax rate? Penalising 19,000 people who don’t understand it.

The UK’s high marginal tax rates on people earning £50k are a disincentive to work. They’re made worse by the way a large chunk of the tax is collected – the “high income child benefit charge” (HICBC). The HICBC creates a “tax trap” for employees who usually wouldn’t file a tax return. If they earn […]

Marginal tax rate on next £ (IT, employee NICs and child benefit charge}

80%

70%

60%

50%

40%

30%

20%

10%

O%

£20,000

£40,000

UK marginal tax rate for single earner, family of 3 kids

TAX
POLICY
ASSOCIATES

£60,000 £80,000 £100,000 £120,000 £140,000 £160,000 £180,000
Gross salary {single earner in household with three children)

Sep 24, 2023 Policy

Why cutting 70%+ marginal rates should be a Government priority

If I was a Tory Chancellor, I wouldn’t abolish inheritance tax. I’d fix the ridiculous marginal rates that mean there are hundreds of thousands of 30-somethings paying more than 70% tax on every additional £ they earn. This is complicated, unfair and a disincentive to work; it could also plausibly be holding back growth. Any […]

UK marginal tax rate for single earner, famuly of 3 kids

Oct 4, 2022 Analysis • Policy

The UK should cut the top 90% rate of income tax

Well-intentioned bodges to the UK income tax system have created anomalously high marginal tax rates for people earning between £50-60k and £100-125k. The marginal rate typically hits 68% but can reach 90%. This is complicated, unfair and a disincentive to work; it could also plausibly be holding back growth. Any government serious about fixing the […]