3 ms·
It's the marginal rate, not the overall rate.
by zwischenzug 4y ago
It's the marginal rate, not the overall rate.
- blitzar 4y agoFurther, the 120,000th pound is taxed at 40%. The effective marginal rate of 60% comes from losing the 0% rate benefits for low earners on the 10,000th pound you earnt. The same thing also happens at 50,000 where you lose your child benefit government handouts, but funnily enough its less discussed yet the comparable rate is 65%.