Tax

Taxable Income

Income left after statutory deductions and reliefs, on which PAYE bands are applied.

Taxable income is gross income minus allowable deductions — pension, NHF and NHIS contributions and rent relief. The PAYE bands are applied to this figure, not to gross pay, which is why effective tax rates are usually well below the top marginal band.

Related terms

PAYE Rent Relief Effective Tax Rate

See it applied to real payroll

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