Gross and Net Income
|Net Income||Please enter salary|
- Gross Income
- is the sum of all your earnings before any taxes have been deducted, minus any exemptions.
- Net Income
- is the money you take home after all taxes and contributions have been deducted from your gross salary.
|National Insurance (NI)|
|Tax due||Please enter salary|
- Tax due
- is the sum of all taxes and contributions that will be deducted from your gross salary.
The deductions used in the above salary calculator assume you are not married and you have no dependents.
Taxation in the United Kingdom
- Income Tax
- is a progressive tax, with higher rates being applied to higher income levels. The first 12,500 GBP of your wage are not taxed (standard personal allowance). The remainder is taxed using three progressive rates: the basic rate of 20%, then the higher rate of 40%, and finally, the additional rate of 45%. The thresholds between these tax bands depend on your personal circumstances.
- National Insurance (NI)
- is a contribution that enables access to certain benefits, including: State Pension, Jobseeker's Allowance, and Maternity Allowance. Depending on your employment status and income level, you must pay one of the four different National Insurance classes. Employed individuals qualify for Class 1 NI, meaning that the contribution is 12% of the gross salary if earning between 672 GBP and 3532 GBP per month, or 2% if the monthly wage is higher than 3532 GBP. Since it is the most common NI class, our calculator makes deductions for Class 1 NI.
The information presented on this page is based on the fiscal regulations of the United Kingdom in 2019. Visit gov.uk for more details.
Financial Facts about the United Kingdom
The average monthly net salary in the UK is around 1 730 GBP, with a minimum income of 1 012 GBP per month. This places United Kingdom on the 5th place out of 72 countries in the International Labour Organisation statistics for 2012.
Most individuals pay Income Tax through the pay-as-you-earn (PAYE) system. Employers use this system to take Income Tax and National Insurance contributions from the employee's monthly salary. Self-employed individuals may pay these taxes through Self Assessment, by filling in a tax return at the end of the year.
The capital, London, was named the most popular city in the world five times in the last seven years, ahead of Paris. London is also one of the world's foremost industrial, financial, commercial, and cultural centres. According to numbeo.com the cost of living in London is high, being the 16th most expensive city in Europe.
With an unemployment rate of only 5.4% and a good social security system, UK is also one of the countries with the highest number of immigrants in Europe — over 7 million people, or about 12% of its population.