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Data Starter: UK income tax 2025-26

Elizabeth Veal

23rd September 2025

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How much income tax needs to be paid?

Using the income tax thresholds for 2025-26 in this gov.uk page (scroll down to the Income tax rates and bands table on https://www.gov.uk/income-tax-rates), answer these questions:

  1. What is the marginal rate of income tax for someone earning (a) £10,000, (b) 20,000, (c) £40,000, (d) 75,000 and (e) £150,000?
  2. Calculate the income tax payable for someone earning £25,000 and for someone earning £75,000. Before income tax the higher earner is earning three times as much as the lower earner. How does income tax change this?

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Elizabeth Veal

Liz has taught Economics for over 25 years, including several years as Head of Economics at leading schools.