The effective tax rate shows what proportion of your income goes to tax, calculated from actual tax paid. It differs from the marginal rate due to the UK's banded system and personal allowance adjustments.
UK Effective Tax Rate by Income Level
The graph shows how the effective tax rate increases with income, peaking at 47%.
Global Perspective
The UK's 47% peak effective tax rate compares favorably to other G20 nations. Note that most international comparisons show marginal rates rather than effective rates:
Source: Reddit - G20 Income Tax Rates
Key Takeaways
UK's effective tax rate peaks at 47%
Compares favorably with other G20 nations
Wealth taxation remains a separate consideration
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