Stable Numbers
UK Marginal Tax Rate Explorer 2025/26
See how your next £1 is taxed. This page models Income Tax, employee National Insurance, the High Income Child Benefit Charge, and student loans for England, Wales and Northern Ireland in 2025/26.
Employment income before deductions.
Reduces adjusted net income. Percent applies to salary.
Child Benefit is tapered from £60,000 to £80,000 of adjusted net income.
What is changing at this level
Marginal rate across income
Marginal rate shows how much of the next £1 would go in tax, NI, child benefit charge and student loans at each income level.
| Income | Marginal | Average | Net annual | Notes |
|---|---|---|---|---|
What is a marginal tax rate
Your marginal rate is how much of your next pound would be taken in tax and related deductions. It is not the same as your average rate, which is your total deductions divided by your income.
Why the spikes happen
- Personal allowance taper. From £100,000 to £125,140 your tax-free allowance is withdrawn. This creates a very high marginal rate in that range. GOV.UK shows the bands and taper rules.
- High Income Child Benefit Charge. From £60,000 to £80,000 the charge withdraws 1 percent of Child Benefit for each £200 over £60,000.
- National Insurance. Employee NI is 8 percent between £12,570 and £50,270, then 2 percent above that for 2025/26.
- Student loans. Deductions begin once you pass your plan threshold. Current 2025/26 thresholds are published by GOV.UK.
Defaults used in this tool
- Child Benefit weekly rates: £26.05 for the eldest child and £17.25 for each additional child in 2025/26.
- Employee NI thresholds: Primary threshold £12,570, Upper Earnings Limit £50,270 for 2025/26.
Tips
- Small changes to pension via salary sacrifice can keep adjusted net income below the Child Benefit and personal allowance cliffs.
- Use the CSV to examine marginal points around £60,000, £100,000 and £125,140.