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If you are living in the UK and earning a gross annual salary of £33,176, or £2,765 per month, the total amount of taxes and contributions that will be deducted from your salary is £6,592.
This means that your net income, or salary after tax, will be £26,584 per year, £2,215 per month, or £511 per week.
Because taxes are complicated and vary greatly based on personal circumstances, we've made a few assumptions to make this salary calculator for the UK easy to use. These include that you're employed, are not married and have no dependents. Once all personal circumstances and deductions have been accounted for, you may owe a different amount in taxes.
For a more accurate estimate of your take-home pay, check the Advanced Options in the calculator form. You can indicate whether you reside in Scotland, where tax rates are slightly different, specify if you make student loan repayments, and state what percentage of your gross pay you contribute to your workplace pension.
Tax Breakdown
For a gross annual income of £33,176, our UK tax calculator projects a tax liability of £549 per month, approximately 20% of your paycheck. The table below breaks down the taxes and contributions levied on these employment earnings in the UK.
| Yearly | Monthly | Weekly | |
|---|---|---|---|
| Gross Income | £33,176 | £2,765 | £638 |
| Income Tax | £4,121 | £343 | £79 |
| National Insurance | £2,471 | £206 | £48 |
| Student Loan | £0 | £0 | £0 |
| Workplace Pension | £0 | £0 | £0 |
| Total Tax Due | £6,592 | £549 | £127 |
| Take-Home Pay | £26,584 | £2,215 | £511 |
What Is the Average Salary in the UK?
The average (mean) salary in the UK is £638 a week, £2,765 a month, or £33,176 a year before tax, according to ONS and HMRC. However, averages tend to skew toward high-income individuals. For a more dependable estimation, we can look at the median gross salary in the UK, which is £26,484 a year, or £2,207 monthly.
To more clearly illustrate what most individuals in the UK earn, we've compiled a before- and after-tax earnings table for some of the country's largest urban areas.
| City | Average Gross Salary | Monthly Take-Home Pay |
|---|---|---|
| London | £31,692 | £2,131 |
| Manchester | £24,360 | £1,716 |
| Birmingham | £24,012 | £1,696 |
| Glasgow | £25,872 | £1,803 |
| Liverpool | £24,432 | £1,720 |
| Bristol | £27,240 | £1,879 |
| Belfast | £25,560 | £1,784 |
| Edinburgh | £28,608 | £1,956 |
What Is the Minimum Wage in the UK?
The UK enforces a National Living Wage for workers aged over 23 and a National Minimum Wage for those of at least school-leaving age (starting at 16 depending on where you live). As of April 2023, the National Living Wage is £10.42 an hour. The National Minimum Wage is £10.18 for ages 21 to 22, £7.49 for ages 18 to 20, £5.28 for ages under 18 and apprentices.
Assuming a 37.5-hour work week, the National Living Wage for a 23-year-old is £391 a week, £1,693 a month, or £20,319 a year. Using our UK take-home pay calculator, that comes out to £1,487 a month after-tax, in England, Wales, or Northern Ireland, and slightly more in Scotland, where the monthly take-home pay would sit at £1,489.
How Is Salary Calculated and Paid in the UK?
If you are employed in the UK, then you usually pay all your taxes through the Pay As You Earn (PAYE) scheme. This means that your employer will automatically deduct income tax, National Insurance contributions, and any student loan repayments from your gross salary.
If your taxes are collected through PAYE, then you generally don't have to file a tax return, but it's important to note that your employer figures out your tax liability based on your P45 form. If you're self-employed, then you need to complete a self-assessment tax return.
Regularly reviewing your payslips is crucial to make sure you're not overpaying on taxes. Find out how to legally reduce your tax bill in our 9 Tips to Lower Your Tax Bill article.
UK Student Loan Repayment
If you have a UK student loan, after you complete your studies and earn over a certain threshold, you must start repaying your loan. Your assigned repayment plan, which depends on when and where you took out the loan, determines the repayment rate (either 9% or 6% of your gross salary) and threshold (from £21,000 to £27,660).
The table below lists the different repayment plans, eligibility criteria, thresholds, and contribution rates. Note that if you work multiple jobs, each job is considered separately towards paying back your student loan. Your plan also determines your loan's interest rate, however any remaining debt is written off after a period of 25 to 40 years. For complete information on UK student loans, refer to the government's comprehensive guide.
| Plan | Eligibility | Rate |
|---|---|---|
| Plan 1 | Northern Ireland (undergraduate or graduate course), or England or Wales (undergraduate or graduate course before 1 Sept 2012) | 9% over £22,015 |
| Plan 2 | England (undergraduate course between 1 Sept 2012 – 31 July 2023) or Wales (undergraduate course after 1 Sept 2012) | 9% over £27,295 |
| Plan 4 | Scotland (undergraduate or graduate course) | 9% over £27,660 |
| Plan 5 | England (undergraduate course after 1 Aug 2023) | 9% over £25,000 |
| Postgraduate Postgraduate | England or Wales (graduate course after 1 Sept 2012) | 6% over £21,000 |
Taxes Included in This UK Take-Home Pay Calculator
Taxes in the UK are overseen by His Majesty's Revenue & Customs (HMRC). In our UK salary calculator, we account for the three major tax expenses that UK wage-earners can expect:
- Income Tax: The UK income tax system is based on marginal tax rates, so your total taxes due will depend on how much of your income falls within each tax band. For England, Wales, and Northern Ireland, your first £12,570 is tax-free. A 20% tax rate is applied up to £50,270, a 40% tax rate up to £125,140, and a 45% tax rate for all additional income. For Scotland, the tax brackets differ slightly and can be found on the government's Income Tax in Scotland page.
- National Insurance (NI): If you're older than 16 and are making more than £242 a week, then you have to make an NI contribution. These contributions qualify you for State Pension and additional benefits, like Jobseeker's Allowance.
- Workplace Pension: If you're employed in the UK, you likely participate in an "auto-enrolment" workplace pension scheme. A minimum of 8% of your qualifying gross earnings goes into this scheme, with your employer contributing at least 3%. The rest, up to 5% or less depending on your employer's contribution, is deducted from your pre-tax salary. While opting out is possible, it's not recommended. You can choose to increase your contribution, and your employer will typically match it. Additionally, you benefit from tax relief, with investments growing tax-free until retirement.
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