Tax Cliff Edge Visualiser
See exactly how much tax you pay on each extra pound earned. The chart below reveals the hidden cliff edges in the UK tax system where your effective rate spikes dramatically.
Marginal Tax Rate by Income
Each bar shows how much tax you pay on the next £1,000 earned at that income level. England, Wales & Northern Ireland rates.
Key Cliff Edges Explained
Your personal allowance (£12,570) is withdrawn by £1 for every £2 earned above £100,000. Combined with 40% income tax and 2% NI, this creates an effective marginal rate of 60%. Every extra £100 earned in this band only puts £40 in your pocket. Pension contributions are the most effective way to avoid this trap.
Income above £50,270 is taxed at 40% instead of 20%. However, NI drops from 8% to 2%, so the combined jump is less dramatic than it appears (32% to 42%).
Once your personal allowance is fully withdrawn, the marginal rate actually drops back down to 47% (45% + 2% NI). This creates the counterintuitive situation where someone earning £150,000 has a lower marginal rate than someone earning £110,000.