What is the additional rate tax rate for non-savings income?

The additional rate of tax for non-savings income is indeed 45%. This rate applies to individuals whose income exceeds a certain threshold, which is determined by the government and can change from year to year. In the UK, for example, taxpayers with income over £150,000 are taxed at this rate on their non-savings income, such as earnings from employment or profits from self-employment.

Understanding the tiers of income tax is crucial for effective financial planning and tax compliance. Below the additional rate, there are lower rates for basic and higher rate taxpayers, which are set at different income levels. Being aware of these rates helps taxpayers anticipate their tax liabilities based on their income levels and make informed decisions regarding their finances.