Gross and Net Income
|Net Income||Please enter salary|
Use the salary calculator above to quickly find out how much tax you will need to pay on your income. Simply enter your annual or monthly gross salary to get a breakdown of your taxes and your take-home pay.
- 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 tax calculator assume you are not married and you have no dependants.
Taxation in the UK
- Income Tax
- is a progressive tax, with higher rates being applied to higher income levels. The first 12500 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 792 GBP and 4167 GBP per month, or 2% if the monthly wage is higher than 4167 GBP. Since it is the most common NI class, our calculator makes deductions for Class 1 NI.
The information presented here is based on the fiscal regulations in the United Kingdom in 2021. Visit gov.uk for more details.
Cost of living in London
The median gross income in London is 3,916 GBP per month. According to the results of our survey, with this salary a single person with no dependants is likely to:
- afford living in a shared apartment
- have a standard lifestyle, affording to go out a few times per week
To find out more, including a comparison between London and other cities, check out our dedicated Cost of Living page.View more
Financial Facts about the UK
The average monthly net salary in the United Kingdom is around 2100 GBP, with a minimum income of 1200 GBP per month. This places UK 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. However, the cost of living in London is one of the highest in the world, being one of the most expensive cities in Europe.
With an unemployment rate of only 5.4% and a good social security system, United Kingdom is also one of the countries with the highest number of immigrants in Europe — over 7 million people, or about 12% of its population.