Your Total Income After Tax
|Salary Before Tax|
|Salary After Tax||Please enter salary|
Simply enter your annual or monthly income into the salary calculator above to find out how UK taxes affect your income. You'll then get a breakdown of your total tax liability and take-home pay.
- Salary Before Tax
- your total earnings before any taxes have been deducted. Also known as Gross Income.
- Salary After Tax
- the money you take home after all taxes and contributions have been deducted. Also known as Net Income.
Want to find out what lifestyle you will be able to afford with your salary in London and in other parts of the UK? Learn everything you need to know from our in-depth Cost of Living in London guide!
Your Income Tax Breakdown
|National Insurance (NI)|
|Total Tax Due||Please enter salary|
- Total Tax Due
- the sum of all taxes and contributions that will be deducted from your gross salary.
The deductions used in the calculator assume you are not married and have no dependants. You may pay less if tax credits or other deductions apply.
Interested in paying less tax and saving your hard-earned money? Check out our 9 Tips to Pay Less Tax in the UK article.
Taxes in the UK
Our simple salary calculator gives an estimate of your take-home pay after your employer has made deductions from your gross salary. These include income tax as well as National Insurance payments. The UK's income tax and National Insurance rates for the current year are set out in the tables below.
income tax is paid on your personal earnings. The system is based on marginal tax rates, with your total tax payment calculated as a percentage of your income within certain thresholds. Therefore, you will not be taxed at a single, flat rate on everything that you earn. For starters, everyone is entitled to earn a set amount of income tax-free. This is known as your personal allowance, which works out to £12,570 for the 2021/2022 tax year. After this, you will pay 20% on any of your earnings between £12,571 and £50,270, and 40% on your income between £50,271 and £150,000. Anything you earn above £150,000 is taxed at 45%.
For every £2 you earn over £100,000, your tax-free personal allowance decreases by £1. This means that as you earn more beyond that figure, more of your total income is taxed.
The tax rates listed above apply to England, Wales, and Northern Ireland. The tax brackets and the rates applicable in Scotland are slightly different, and are listed in the table below.
National Insurance (NI)
anyone who earns above a certain amount must pay National Insurance (NI) in addition to income tax. This is a mandatory contribution that entitles you to certain state benefits including the State Pension and Jobseeker's Allowance. Employees usually pay Class 1 NI contributions while self-employed people must pay Class 2 contributions. As with income tax, you'll only pay a higher rate of NI on income over a certain threshold — rather than paying the top band on all your earnings.
Student Loan Repayments
in the UK, students are required to contribute towards their student loan debt once they start earning over a certain threshold. You'll have to make Plan 1 loan repayments if your course started before 1 September 2012 or if your loan is from the Scottish or Northern Irish student finance agencies. Plan 2 repayments apply to anyone whose course started after 1 September 2012 in England or Wales.
UK Tax Rates for 2020 – 2021
|UK Income Tax (excl. Scotland)|
|Tax Band||Tax Rate||Taxable Income|
|Personal Allowance||0%||Up to £12,570|
|Basic Rate||20%||£12,571 to £50,270|
|Higher Rate||40%||£50,271 to £150,000|
|Additional Rate||45%||£150,001 or more|
|Scotland Income Tax|
|Tax Band||Tax Rate||Taxable Income|
|Personal Allowance||0%||Up to £12,570|
|Starter Rate||19%||£12,571 to £14,667|
|Basic Rate||20%||£14,668 to £25,296|
|Intermediate Rate||21%||£25,297 to £43,662|
|Higher Rate||41%||£43,663 to £150,000|
|Top Rate||46%||£150,001 or more|
|National Insurance (Class 1 — for Employees Only)|
|How Much You Earn||How Much You'll Pay|
|Less than £9,568||0%|
|£9,569 to £50,270||12%|
|More than £50,270||2%|
|Student Loan Repayments|
|Student Finance Plan||Repayment Rates|
|Plan 1 (Course started before 1 September 2012 or loan from Northern Irish or Scottish student loan agency)||9% of pre-tax earnings over £19,895 per year|
|Plan 2 (Course started after 1 September 2012 in England or Wales)||9% of pre-tax earnings over £27,295 per year|
The tax rates above apply to UK employees and do not pertain to self-employed taxpayers.
How to Manage Your Tax in the UK
Your employment status will influence the way in which you need to handle your tax payments. The categories below are the most common ways that income tax is collected in the UK.
Most UK employees pay tax through the Pay As You Earn (PAYE) system. This means that your employer will deduct income tax, National Insurance and student loan payments directly from your total pay before it reaches your bank account. Taxpayers whose tax is collected from PAYE will not usually need to file a tax return unless they have another source of income or earn over £100,000.
UK Self-Assessment Tax Returns
if you're self-employed or have earned over £100,000, you'll usually need to complete an annual self-assessment tax return. Returns are usually due in January, and can be quite complex — often requiring the assistance of an accountant to complete.
To submit a tax return to HMRC, you'll need to register online or complete a paper copy. UK self-assessment tax returns should provide details of all income, benefits, pension contributions, allowances, and even charitable donations. Once your self-assessment tax return has been completed and approved by HMRC, you will typically need to pay in two stages that fall in January and July of each year.
How to Pay Less Tax in the UK
Thousands of people are paying too much tax in the UK. By claiming tax credits, free childcare, and putting money away for retirement, you could save hundreds or even thousands of pounds on tax each year.
Working Tax Credit alone could save eligible claimants up to £2,005 per tax year. These savings could increase dramatically if you can claim Child Tax Credit, or if you can structure your earnings to pay less using the Married Couple's Allowance which could help you to save a further £250.
You can even save money on UK income tax by preparing for the future. Saving for retirement is one of the easiest ways to reduce your taxable income, and basic rate taxpayers can even earn up to £1,000 of interest on their savings without needing to pay another penny.
To find out more about how you can save on your UK tax bill, read our full guide here.
What is the Average UK Income?
The median monthly household income in the United Kingdom is £2,491, before deductions such as income tax and National Insurance payments have been made. This equates to an annual salary of £29,900 annually — although it should be noted that this figure represents the income of a household, not an individual. Half of the population earns less than this figure, and only those people who are required to pay income tax are included in the statistics.
The majority of taxpayers get an annual salary, pro-rated over the course of the working year. Those aged 23 and over should earn the National Minimum Wage of at least £8.91 per hour regardless of how they're paid. Full-time employees generally work for 35 hours or more each week. A full-time worker on minimum wage could therefore expect to earn at least £311.85 per week, £1,351.35 per month, or £16,216.20 per year before tax and other deductions.
The above figures place the UK in 9th place in the International Labour Organisation's 2018 ranking of minimum wage rates by country.
The UK is home to people of many nationalities and the capital city, London, is particularly diverse. It is often recognised as one of the best cities in the world, but it's also one of the most expensive. London ranked 19th in the top most expensive cities worldwide according to the Mercer 2020 Cost of Living Survey — but many other parts of the country are significantly cheaper.
With low unemployment rates and a huge variety of active business sectors, residents of the UK benefit from strong career opportunities and an internationally renowned social security system.