Glossary · PAYE and payroll
Marginal tax rate
The tax you pay on your next euro of income.
Above the 40% band, an employee's marginal rate is income tax plus USC plus PRSI: about 52% on most income above €70,044. Below the band it's much lower. Your marginal rate is what a pay rise, bonus or pension contribution really costs or saves you.
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Related terms
Tax band · Overtime · Bonus tax
All terms · General information, not tax advice.