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The rate applied to the next pound of taxable income.
Your marginal Income Tax rate is the rate that applies to the next pound of taxable income. It can differ from your average rate across all income. The overall change in take-home pay can also reflect National Insurance, student-loan repayments, pension settings, and withdrawn allowances or benefits.
This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.
These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.