UK marginal tax rates, explained
Your marginal tax rate is what you lose on your next pound of income, which is different from your effective rate (the tax on your whole income). It matters most when you are deciding whether a pay rise, a bonus or a bigger pension is worth it.
The chart below shows the combined Income Tax and employee National Insurance you pay on each extra pound of salary across income, for the rest of the UK in 2026/27. Toggle the number of children you claim Child Benefit for to add the High Income Child Benefit Charge between £60,000 and £80,000.
Salary only, rest of UK, 2026/27. Excludes student loans. The £100,000 line is the childcare cliff (a one-off loss, not a rate).
The bands at a glance
| Up to £12,570 | 0% | Personal allowance: no Income Tax or National Insurance. |
| £12,571 to £50,270 | 28% | 20% Income Tax plus 8% employee National Insurance. |
| £50,271 to £100,000 | 42% | 40% Income Tax plus 2% National Insurance. |
| £100,000 to £125,140 | 62% | The personal allowance is withdrawn £1 for every £2, an effective 60% Income Tax, plus 2% National Insurance. |
| Above £125,140 | 47% | 45% Income Tax plus 2% National Insurance. |
The 60% trap (£100,000 to £125,140)
Above £100,000 your personal allowance is withdrawn by £1 for every £2 you earn. That extra slice of income becomes taxable at 40%, so each pound effectively costs 60% in Income Tax, plus 2% National Insurance. A pension contribution that brings you back under £100,000 can be remarkably efficient here.
The £100,000 cliffs
£100,000 is also where, if you have young children, you lose Tax-Free Childcare and the 30 free hours entirely. Unlike the tax bands this is a cliff, not a taper, so going a pound over can cost thousands. It is assessed on your adjusted net income, which a pension contribution reduces.
Child Benefit (£60,000 to £80,000)
If you claim Child Benefit, the High Income Child Benefit Charge claws it back across £60,000 to £80,000 of adjusted net income. Spread over that £20,000 band it adds an effective marginal rate of the whole Child Benefit divided by £20,000, so the more children you claim for, the steeper the climb. Use the toggle above the chart to see it.
Scotland
Scottish taxpayers have different bands (up to a 48% top rate), so the equivalent personal-allowance trap can be even higher. National Insurance and the personal allowance are UK-wide, and savings and dividends use UK rates everywhere.
How to soften it
Pension contributions reduce your adjusted net income, which can restore your personal allowance, keep you under the £100,000 childcare cliff, and reduce the Child Benefit charge. The calculator shows the effect on your own numbers.