The UK effective marginal tax rate map, 2026/27
Your marginal rate is what the next £1 of pay actually costs you in Income Tax and employee National Insurance combined. Under 2026/27 rules it is not a smooth climb from 20% to 45% — it steps, and in two places it goes higher than the headline rates suggest.
Every percentage on this page is a combined marginal deduction rate calculated by UKCalc, not an official HMRC tax band. HMRC publishes rates of 20%, 40% and 45%; the figures here are what those rates, the Personal Allowance taper and employee National Insurance add up to on the next £1 of pay for an earner matching the assumptions set out below. Your own rate will differ if your circumstances differ.
The short answer
Between £100,000 and £116,760 the combined marginal rate is 62% — the familiar "60% trap" plus employee National Insurance.
Between £116,760 and £125,140 UKCalc derives a 69.5% combined marginal rate. In that range the Personal Allowance is still being withdrawn and the additional rate already applies, so each extra £1 of pay creates £1.50 of taxable income taxed at 45%, plus 2% National Insurance.
Above £125,140 the allowance is gone and the combined rate falls back to 47% — the 45% additional rate plus 2% National Insurance.
Why the 69.5% combined rate arises
Two separate rules overlap. The Personal Allowance is withdrawn by £1 for every £2 of income above £100,000, so £1 of extra pay adds £1.50 to taxable income. Separately, the additional rate applies once taxable income passes £112,570 — the basic band of £37,700 plus the higher band of £74,870.
Because the taper inflates taxable income, that second threshold is reached at a gross salary below £125,140. Setting taxable income equal to £112,570 and solving for gross pay:
gross − (£12,570 − (gross − £100,000) ÷ 2) = £112,570
1.5 × gross = £112,570 + £12,570 + £50,000
gross = £116,760
From £116,760 the combined marginal rate is 45% × 1.5 = 67.5% of Income Tax, plus 2% employee National Insurance — 69.5%. This is arithmetic on two published statutory rules overlapping, not a rate HMRC publishes. It ends at £125,140, where the allowance reaches zero and the ×1.5 multiplier disappears.
The full marginal rate map
Combined Income Tax and employee National Insurance on the next £1 of gross pay. Employed earner on PAYE, England/Wales/Northern Ireland, no children and no student loan. Computed at £1 resolution. UKCalc calculation, not official HMRC bands.
| Gross salary | Combined marginal rate Income Tax + employee NI | Relative |
|---|---|---|
| £12,570 – £50,269 | 28% | |
| £50,270 – £99,999 | 42% | |
| £100,000 – £116,759 | 62% | |
| £116,760 – £125,139 | 69.5% | |
| £125,140 – above | 47% |
What student loans and Child Benefit add
Student loan repayments and the High Income Child Benefit Charge behave like extra marginal rates in the bands where they apply. They do not change the tax bands — they stack on top.
Assumptions for this table: each figure is the combined marginal rate on the next £1 of gross pay, including Income Tax, employee National Insurance, the High Income Child Benefit Charge and student loan repayments where shown. Child Benefit is assumed to be claimed in full for the whole year and the charge to fall on this earner; student loan repayments assume the earner is above the relevant repayment threshold and still repaying. Employed earner on PAYE, England/Wales/Northern Ireland, no pension contributions or salary sacrifice — any of which would change the result. These are UKCalc calculations under 2026/27 rules, not official HMRC figures.
| Scenario | £45,000 | £65,000 | £70,000 | £90,000 | £110,000 | £120,000 |
|---|---|---|---|---|---|---|
| No children, no student loan | 28% | 42% | 42% | 42% | 62% | 69.5% |
| 1 child | 28% | 49% | 49% | 42% | 62% | 69.5% |
| 2 children | 28% | 53.7% | 53.7% | 42% | 62% | 69.5% |
| 3 children | 28% | 58.3% | 58.3% | 42% | 62% | 69.5% |
| Plan 2 student loan | 37% | 51% | 51% | 51% | 71% | 78.5% |
| Postgraduate loan | 34% | 48% | 48% | 48% | 68% | 75.5% |
| Plan 2 + postgraduate | 43% | 57% | 57% | 57% | 77% | 84.5% |
| 2 children + Plan 2 | 37% | 62.7% | 62.7% | 51% | 71% | 78.5% |
| 2 children + Plan 2 + postgraduate | 43% | 68.7% | 68.7% | 57% | 77% | 84.5% |
The Child Benefit charge bites between £60,000 and £80,000 and is fully withdrawn above that, which is why the children columns converge again at £90,000. Student loan repayments continue for as long as the loan does, so they lift every band above their threshold.
Worked examples
A £2,000 pay rise at £120,000
Gross £120,000 → £122,000. Deductions rise from £44,085.60 to £45,475.60, so of the £2,000 rise the earner keeps £610.00.
The same rise at £70,000 with two children
Deductions rise from £20,011.30 to £21,085.04 — the earner keeps £926.26, because the Child Benefit charge is withdrawing alongside the tax.
Income tax calculator · Take-home pay calculator · Child Benefit calculator · Student loan calculator · Pension contribution calculator
Every statutory figure used here is published with its source on UK rates and thresholds 2026/27.
The underlying figures as data
Every number in the tables above is also published as a JSON file, with the same methodology, assumptions and source list attached, so it can be checked or reused without re-typing it: marginal-rate-bands-2026-27.json.
The band boundaries and stacked-scenario rates are UKCalc calculations, not an official HMRC dataset. The statutory inputs behind it are the same ones published on the verified UK rates page.
What is fact, what is assumption, and what is UKCalc's analysis
- Personal Allowance £12,570, taper from £100,000
- Basic 20%, higher 40%, additional 45%
- NI 8% / 2%
- Child Benefit £27.05/£17.90 a week; charge £60,000–£80,000
- Student loan thresholds and rates
- Employed earner on PAYE. Class 1 National Insurance, not self-employed.
- England, Wales and Northern Ireland income tax. Scotland sets its own bands.
- All income is employment earnings. No dividends, savings interest or other income.
- No salary sacrifice or pension contributions, which would change adjusted net income.
- Where children are shown, the High Income Child Benefit Charge is assumed to fall on this earner and Child Benefit is claimed in full for the whole year.
- The £116,760 crossover, calculated from the taper and the additional-rate threshold
- The 69.5% combined rate and every rate in the tables
- The stacked scenario rates
UKCalc derives these under 2026/27 rules. They are arithmetic on published statutory figures, not official HMRC output.
Sources
- HM Revenue & Customs (GOV.UK) — income tax rates
- HM Revenue & Customs (GOV.UK) — National Insurance
- HM Revenue & Customs (GOV.UK) — Child Benefit
- GOV.UK / Student Loans Company — student loans
Limitations
- Scotland sets its own income tax bands; this map is England, Wales and Northern Ireland.
- Pension contributions, salary sacrifice and Gift Aid reduce adjusted net income and can move you out of a band entirely.
- Self-employed earners pay Class 2/4 National Insurance, not Class 1, so their curve differs.
- Marginal rate is not average rate — it applies to the next £1, not the whole salary.
Statutory figures last verified 2 September 2026 against the sources above, from UKCalc statutory registry 2.5.0. This is general information, not financial or tax advice.