Marginal relief explained

Marginal relief

Your tax is always worked out to see if you benefit from marginal relief.

The marginal tax calculation

Exempt from tax

If your income is below the total of your tax exemption threshold and any other tax deductions you won't pay any tax.

Paying tax at the marginal rate

If your income is over the total of the exemption threshold and any other deductions you'll pay tax but you'll get marginal relief if the marginal rate calculation works out less than the standard rate calculation. You'll get less marginal relief as your income increases.

Maximum tax rate

You'll never pay more than 20% personal tax on your total income in the year.

2023 tax allowances and reliefs

2022 tax allowances and reliefs

Tax calculator

Use our tax calculator to see how the marginal tax calculation works.

Tax calculator

Example tax calculations for a single person

Standard tax calculation		Marginal tax calculation
Income	£25,000	Income	£25,000
		Less: exemption threshold	£18,550
Taxable income =	£25,000	Taxable income =	£6,450
Tax at 20% =	£5,000	Tax calculation at 26% =	£1,677
The amount of tax due is the lower calculation = £1,677. This means you would pay around 6.7% tax on your total income. The difference between the tax at the standard rate and the tax at the marginal rate relief is £3,323. This is called marginal relief.

Standard tax calculation		Marginal tax calculation
Income	£90,000	Income	£90,000
		Less: exemption threshold	£18,550
Taxable income =	£90,000	Taxable income =	£71,450
Tax at 20% =	£18,000	Tax at 26% =	£18,577
The amount of tax is the lower calculation = £18,000. This means you get no allowances and pay the top rate of 20% tax on your total income. There is no marginal relief.

Example tax calculations for a married couple

If you and your partner got married or moved to Jersey after 31 December 2021 you'll be independently taxed. You'll each get the single allowance and will not be able to claim the married allowance.

Find further information on Independent Taxation.

Standard tax calculation		Marginal tax calculation
Income (one spouse not working)	£40,000	Income (one spouse not working)	£40,000
		Less: married allowance	£29,750
		Less: 1 child allowance	£3,450
Taxable income =	£40,000	Taxable income =	£6,800
Tax at 20% =	£8,000	Tax at 26% =	£1,768
The amount of tax is the lower calculation = £1,768. This means you'll pay around 4.4% tax on your total income. The difference between the tax at the standard rate and the tax at the marginal rate relief is £6,232. This is called marginal relief.

Standard tax calculation		Marginal tax calculation
Income (one spouse not working)	£145,000	Income (one spouse not working)	£145,000
		Less: married allowance	£29,750
		Less: 1 child allowance	£3,450
Taxable income =	£145,000	Taxable income =	£111,800
Tax at 20% =	£29,000	Tax at 26% =	£29,068
The amount of tax is the lower calculation = £29,000. This means you get no allowances and pay the top rate of 20% tax on your total income. There is no marginal relief.

Independent Taxation

For independently taxed spouses or civil partners, tax is calculated on their own income. They each receive their own allowance and have their own tax calculation.

Independent Taxation

Marginal relief explained

The marginal tax calculation

Exempt from tax

Paying tax at the marginal rate

Maximum tax rate

Tax calculator

Example tax calculations for a single person

Example tax calculations ​for a married couple

Independent Taxation

Example tax calculations for a married couple