Marginal tax applicable to various income segments for a single person working less than 30 hours per week,
shown
with and without an outstanding student loan
This is the tax rate applicable to additional income within each band, not the tax on all income.
Income band | Event | Tax | NI | WTC | SLC | PA | +SLC | -SLC |
£0 - £6,420 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
£6,420 - £7,091 | Tax credit withdrawal begins | 0 | 0 | 41 | 0 | 0 | 41 | 41 |
£7,091 - £7,480 | NI primary threshold | 0 | 12 | 41 | 0 | 0 | 53 | 53 |
£7,480 - £11,103 | Basic tax deductions start | 20 | 12 | 41 | 0 | 0 | 73 | 73 |
£11,103 - £15,000 | Tax credit fully withdrawn | 20 | 12 | 0 | 0 | 0 | 32 | 32 |
£15,000 - £42,480 | SLC repayments commence | 20 | 12 | 0 | 9 | 0 | 41 | 32 |
£42,480 - £42,601 | Higher rate of tax starts | 40 | 12 | 0 | 9 | 0 | 61 | 52 |
£42,601 - £100,000 | NI upper earnings limit | 40 | 2 | 0 | 9 | 0 | 51 | 42 |
£100,000 - £114,961 | PA withdrawal begins | 40 | 2 | 0 | 9 | 20 | 71 | 62 |
£114,961 - £150,000 | PA fully withdrawn | 40 | 2 | 0 | 9 | 0 | 51 | 42 |
Above £150,000 | Additional tax rate | 50 | 2 | 0 | 9 | 0 | 61 | 52 |
Key: | Tax | PAYE deduction |
NI | National Insurance deduction | |
WTC | Tax credit withdrawal | |
SLC | Student loan repayment | |
PA | Personal Allowance withdrawal rate | |
+SLC | Effective marginal rate including student loan repayment | |
-SLC | Effective marginal rate excluding student loan repayment |