# Hidden marginal tax rates url: https://whereyourmoneygoes.co.uk/hidden-marginal-tax-rates/ updated: 29 September 2026 licence: Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). Figures: each source's own licence, listed under Sources. publisher: [Tekstak Ltd](https://tek-stak.co.uk) # Hidden marginal tax rates Last updated 29 September 2026. Figures refresh every night. [How each figure is worked out](/methodology/). The headline rates are 20%, 40% and 45%, but what you lose from the next pound can be far higher. Between £100,000 and £125,140 the Personal Allowance is withdrawn, so an employee loses **62%** of each extra pound to income tax and National Insurance. With a Plan 2 student loan it is **71%**. A parent claiming child benefit loses more than 50% between £60,000 and £80,000, and someone on universal credit keeps 32p of each extra pound as the award tapers away. Figure as of 22 September 2026. Source: [GOV.UK](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027). ## Key figures - 62%Lost from each extra pound between £100,000 and £125,140 The £100,000 taper point has not moved since 2010 As of 22 September 2026 - 71%The same, with a Plan 2 student loan 9% of income above £29,385 As of 22 September 2026 - 53.7%Parent of two claiming child benefit, between £60,000 and £80,000 Tax, National Insurance and the child benefit charge As of 22 September 2026 - 74%Highest rate for a single parent on universal credit At £51,000, with the 55% taper As of 22 September 2026 - 40%The headline higher rate of income tax, for comparison 20% basic, 45% additional As of 22 September 2026 Source: [GOV.UK](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027). ## What is the short version? - **Why it happens:** most are withdrawals. An allowance or a benefit is taken away as income rises, and the rate of withdrawal stacks on the tax already due; student loan repayments are collected on top in the same way. - **It reaches further each year:** £100,000 has been fixed since the taper began in 2010, so the 60% band catches lower real incomes every year. - **What people do about it:** pension contributions and Gift Aid reduce adjusted net income, which is why people in the band are often advised to pay into a pension. - **The child benefit charge was steeper:** until April 2024 it ran from £50,000 to £60,000, twice as steep as now. - **Never above 100%:** in these examples nobody loses money by earning more, but some keep 30p or less of an extra pound. ## How much of a pay rise do four households lose? **How much of an extra £1,000 of pay is lost, by gross salary, 2026–27** Each point is the share of the next £1,000 of gross pay that does not reach the household, after income tax, employee National Insurance, student loan repayments, the child benefit charge and the universal credit taper where they apply. **The numbers behind this chart** Search | Year | Single, no children | Graduate repaying a Plan 2 loan | Parent of two, claiming child benefit | Single parent of two, renting, on universal credit | | --- | --- | --- | --- | --- | | £0kDetails | 0% | 0% | 0% | 0% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit0% | | | | | | £1kDetails | 0% | 0% | 0% | 0% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit0% | | | | | | £2kDetails | 0% | 0% | 0% | 0% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit0% | | | | | | £3kDetails | 0% | 0% | 0% | 0% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit0% | | | | | | £4kDetails | 0% | 0% | 0% | 0% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit0% | | | | | | £5kDetails | 0% | 0% | 0% | 48.2% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit48.2% | | | | | | £6kDetails | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £7kDetails | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £8kDetails | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £9kDetails | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £10kDetails | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £11kDetails | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £12kDetails | 11.9% | 11.9% | 11.9% | 60.4% | | Graduate repaying a Plan 2 loan11.9%Parent of two, claiming child benefit11.9%Single parent of two, renting, on universal credit60.4% | | | | | | £13kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £14kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £15kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £16kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £17kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £18kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £19kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £20kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £21kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £22kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £23kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £24kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £25kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £26kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £27kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £28kDetails | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £29kDetails | 28% | 33.5% | 28% | 67.6% | | Graduate repaying a Plan 2 loan33.5%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £30kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £31kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £32kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £33kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £34kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £35kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £36kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £37kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £38kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £39kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £40kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £41kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £42kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £43kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £44kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £45kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £46kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £47kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £48kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £49kDetails | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £50kDetails | 38.3% | 47.3% | 38.3% | 72.2% | | Graduate repaying a Plan 2 loan47.3%Parent of two, claiming child benefit38.3%Single parent of two, renting, on universal credit72.2% | | | | | | £51kDetails | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £52kDetails | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £53kDetails | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £54kDetails | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £55kDetails | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £56kDetails | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £57kDetails | 42% | 51% | 42% | 64.2% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit64.2% | | | | | | £58kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £59kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £60kDetails | 42% | 51% | 53.6% | 53.6% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.6%Single parent of two, renting, on universal credit53.6% | | | | | | £61kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £62kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £63kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £64kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £65kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £66kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £67kDetails | 42% | 51% | 53.6% | 53.6% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.6%Single parent of two, renting, on universal credit53.6% | | | | | | £68kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £69kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £70kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £71kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £72kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £73kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £74kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £75kDetails | 42% | 51% | 53.6% | 53.6% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.6%Single parent of two, renting, on universal credit53.6% | | | | | | £76kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £77kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £78kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £79kDetails | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £80kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £81kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £82kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £83kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £84kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £85kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £86kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £87kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £88kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £89kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £90kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £91kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £92kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £93kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £94kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £95kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £96kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £97kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £98kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £99kDetails | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £100kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £101kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £102kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £103kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £104kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £105kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £106kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £107kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £108kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £109kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £110kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £111kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £112kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £113kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £114kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £115kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £116kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £117kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £118kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £119kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £120kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £121kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £122kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £123kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £124kDetails | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £125kDetails | 49.1% | 58.1% | 49.1% | 49.1% | | Graduate repaying a Plan 2 loan58.1%Parent of two, claiming child benefit49.1%Single parent of two, renting, on universal credit49.1% | | | | | | £126kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £127kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £128kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £129kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £130kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £131kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £132kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £133kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £134kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £135kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £136kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £137kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £138kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £139kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £140kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £141kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £142kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £143kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £144kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £145kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £146kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £147kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £148kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £149kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | | £150kDetails | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | Figure as of 22 September 2026. Source: [GOV.UK](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027). | Gross salary | Single, no children | Graduate repaying a Plan 2 loan | Parent of two, claiming child benefit | Single parent of two, renting, on universal credit | | --- | --- | --- | --- | --- | | £10,000Details | 0% | 0% | 0% | 55% | | Graduate repaying a Plan 2 loan0%Parent of two, claiming child benefit0%Single parent of two, renting, on universal credit55% | | | | | | £20,000Details | 28% | 28% | 28% | 67.6% | | Graduate repaying a Plan 2 loan28%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £30,000Details | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £45,000Details | 28% | 37% | 28% | 67.6% | | Graduate repaying a Plan 2 loan37%Parent of two, claiming child benefit28%Single parent of two, renting, on universal credit67.6% | | | | | | £55,000Details | 42% | 51% | 42% | 73.9% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit73.9% | | | | | | £65,000Details | 42% | 51% | 53.7% | 53.7% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.7%Single parent of two, renting, on universal credit53.7% | | | | | | £75,000Details | 42% | 51% | 53.6% | 53.6% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit53.6%Single parent of two, renting, on universal credit53.6% | | | | | | £90,000Details | 42% | 51% | 42% | 42% | | Graduate repaying a Plan 2 loan51%Parent of two, claiming child benefit42%Single parent of two, renting, on universal credit42% | | | | | | £110,000Details | 62% | 71% | 62% | 62% | | Graduate repaying a Plan 2 loan71%Parent of two, claiming child benefit62%Single parent of two, renting, on universal credit62% | | | | | | £130,000Details | 47% | 56% | 47% | 47% | | Graduate repaying a Plan 2 loan56%Parent of two, claiming child benefit47%Single parent of two, renting, on universal credit47% | | | | | ## Why is there a 60% band between £100,000 and £125,140? Above £100,000 of adjusted net income, £1 of Personal Allowance is lost for every £2 earned. Each extra £100 is taxed at 40%, and it also removes £50 of allowance, which is then taxed at 40% too: £60 in all. Add 2% National Insurance and an employee keeps £38 of each £100. The band ends at £125,140, where the allowance reaches zero, after which the rate falls to 45% plus 2%. **Where an extra £100 of pay goes between £100,000 and £125,140** - + Kept £38 - + Income tax at 40% on the £100 tax £40 - + Income tax on the £50 of allowance withdrawn tax £20 - + National Insurance at 2% tax £2 - = Extra pay £100 An employee under State Pension age, rates outside Scotland. **Show as a table** | Part | Of each £100 | | --- | --- | | Kept | £38 | | Income tax at 40% on the £100 (tax) | £40 | | Income tax on the £50 of allowance withdrawn (tax) | £20 | | National Insurance at 2% (tax) | £2 | | Total: Extra pay | £100 | Figure as of 22 September 2026. Source: [GOV.UK](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027). Because £100,000 has been fixed since the taper began in 2010, the band reaches further down the real income scale every year. Pension contributions and Gift Aid reduce adjusted net income, which is why people in the band are often advised to pay into a pension. [See your own take-home pay, including the 60% band and student loan repayments](https://howlongisit.co.uk/uk-salary-calculator) ## How does the High Income Child Benefit Charge work? Child benefit is £27.05 a week for the eldest child and £17.90 for each other child. Once the higher earner's income passes £60,000, 1% of it is taken back through the tax system for every £200 above the threshold, until all of it has gone at £80,000. For a family with two children that is about £117 for every extra £1,000 earned, on top of 42% in tax and National Insurance. £117 Child benefit taken back for each extra £1,000 a parent of two earns between £60,000 and £80,000, on top of £420 in tax and National Insurance. Based on the higher earner's individual adjusted net income, not on household income. Until April 2024 the charge ran from £50,000 to £60,000, twice as steep. ## How does the universal credit taper work? Universal credit is reduced by 55p for every £1 of earnings after tax and National Insurance, once earnings pass the work allowance (£427 a month for a claimant with children who gets help with rent, £710 without). For a basic-rate taxpayer that stacks on 28% of tax and National Insurance: of each extra £1 earned, 72p is left after tax and 55% of that is withdrawn, so about 32p is kept. **Where an extra £1 of pay goes for a basic-rate taxpayer on universal credit** - + Kept 32p - + Income tax and National Insurance, 28% tax 28p - + Universal credit withdrawn, 55% of what is left tax 40p - = Extra pay 100p Earnings above the work allowance. The withdrawn credit is not a tax, but it comes off the same pound; it is marked with the tax colour here because it is lost in the same way. **Show as a table** | Part | Of each £1, pence | | --- | --- | | Kept | 32p | | Income tax and National Insurance, 28% (tax) | 28p | | Universal credit withdrawn, 55% of what is left (tax) | 40p | | Total: Extra pay | 100p | Figure as of 22 September 2026. Source: [GOV.UK](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027). Our example is a single parent aged 25 or over with two children, getting help with a rent of £750 a month. An assumption for the worked example, not a statistic: a modest private rent for a two-child household. Universal credit help with rent is capped by the Local Housing Allowance, which varies by area. The two-child limit on the child element was abolished from 6 April 2026. [Estimate universal credit, including the 55% taper](https://howlongisit.co.uk/universal-credit-calculator) ## What do student loans add on top of income tax? A graduate on Plan 2 repays 9% of income above £29,385 a year. It is collected through PAYE like tax, so between the threshold and the higher-rate threshold the deduction from the next pound is 37% rather than 28%, and 51% rather than 42% above it. Whether that is a tax is argued on the [student loans page](/student-loan-repayments/): it stops once the loan is repaid or written off. 37% Taken from the next pound by income tax, National Insurance and a Plan 2 repayment together, between £29,385 and the higher-rate threshold: 28% without the loan. [Work out your take-home pay with student loan repayments](https://howlongisit.co.uk/uk-salary-calculator) ## How is this worked out? **Every assumption behind the four examples** - Employment income only, for one earner, living outside Scotland. - No pension contributions, salary sacrifice or other deductions, so gross pay equals adjusted net income. - Employee National Insurance at the main and upper rates on annualised weekly thresholds, as if paid evenly all year. - Child benefit claimed for two children where shown. The charge that claws it back is modelled at 1% per £200 of income above the threshold. - Universal credit uses the monthly maximum award shown, which is the standard allowance and child elements plus an illustrative rent. Council tax support, childcare costs, free school meals and other passported help are left out, and each of those adds its own withdrawal. - Student loan repayments are counted as a deduction from pay. Whether that is a tax is argued on the student loans page; it is shown here because it comes out of the same payslip. Checked 22 September 2026. Source: [GOV.UK](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027). Checked by hand 22 September 2026. ## Should marginal rates be this high? ### Why withdrawals exist - Targeting help at lower incomes means withdrawing it somewhere; a taper is how. - A slow taper costs more, because more people stay entitled for longer. - The allowance taper concentrates the benefit of the Personal Allowance on those below £100,000. ### Why they are criticised - Rates above 60% in the middle of the income scale can discourage extra hours or promotion. - The thresholds are frozen, so the traps catch more people each year. - Few people know the rates exist until they hit them. ## Common questions What is the 60% tax trap? Between £100,000 and £125,140 the Personal Allowance is withdrawn at £1 for every £2 earned, so each extra pound is taxed at an effective 60%, or 62% with National Insurance.Does anyone lose money by earning more? Not in these examples: the effective rate stays below 100% everywhere. But combined withdrawals can leave someone keeping 30p or less of an extra pound. ## Sources for this page | Source | Publisher | Figures as of | Updated | Licence | | --- | --- | --- | --- | --- | | [GOV.UK, Benefit and pension rates 2026 to 2027](https://www.gov.uk/government/publications/benefit-and-pension-rates-2026-to-2027/proposed-benefit-and-pension-rates-2026-to-2027) | GOV.UK | 22 September 2026 | annual | [Open Government Licence v3.0](https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/) | Each source's figures are used under the licence shown. Our own words, analysis, charts and derived calculations are ours, under [CC BY 4.0](https://creativecommons.org/licenses/by/4.0/). ## Related pages - [Next in this section: Cut allowances: capital gains, dividends and savings](https://whereyourmoneygoes.co.uk/allowance-cuts/) - [How much does the state charge for passports, licences, certificates and other services?](https://whereyourmoneygoes.co.uk/government-fees/) - [How is each figure on this site worked out?](https://whereyourmoneygoes.co.uk/methodology/) - [How much are HMRC penalties and interest, and how much do they raise?](https://whereyourmoneygoes.co.uk/hmrc-penalties-and-interest/) ## More from this publisher - [UK tax calculators](https://howlongisit.co.uk) Published by [Tekstak Ltd](https://tek-stak.co.uk). Our words, analysis, charts and derived calculations: CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/), credit [Tekstak Ltd](https://tek-stak.co.uk). The figures belong to the publishers listed under Sources and are used under their licences. Figures last updated 29 September 2026.