That's the marginal tax rate. It's not your effective tax rate. | Hacker News

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HappyTypist on Aug 20, 2015 | parent | context | favorite | on: Finland considers basic income to reform welfare s...

That's the marginal tax rate. It's not your effective tax rate.

throwaway12309 on Aug 20, 2015 | [–]

Sorry, can you explain the difference? When I was in the UK that was basically what I paid and never got anything back.

IanCal on Aug 20, 2015 | [–]

The marginal tax rate at £50k is actually 42%, just looking at income tax (40%) and NI (2% at that point).

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