Amara lives in a country that taxes income. The rules of this tax did not change between 2025 and 2026, but her income rose. The table shows her annual income and the tax she paid on it in each year.
| Year | Annual income | Tax paid on income |
|---|---|---|
| 2025 | £32,000 | £2,560 |
| 2026 | £40,000 | £3,200 |
What do the figures show about this tax?
It is proportional, because she pays the same percentage of her income in tax in both years.
It is proportional, because her tax and her income both rise from one year to the next.
It is regressive, because her tax rises by far fewer pounds than her income does.
It is progressive, because she pays £640 more in tax once her income has risen.
75 exam-style questions on AQA GCSE Economics 2.1 Introduction to the national economy, covering 2.1.1a What an interest rate is, 2.1.1b Interest rates and consumer decisions, 2.1.1c Interest rates, producer decisions and calculations, 2.1.2a UK government revenue and spending, and 2.1.2b Direct, indirect and progressive taxation. Each one has a worked solution and a mark scheme showing where the marks go.