Take Home Calculator UK - 2023/2024

How much is your salary after taxes in the UK?

Salary calculator 2023/2024

Your Salary

Salary after tax

Take home pay: £24,423

Income Tax: £3,486

National Insurance: £2,091

Contribution Rate: 19%

Last update: June, 2024

Frequently Asked Questions (FAQ)

How to calculate take home pay?

To calculate take-home pay in the UK, subtract the following from your gross salary:

  • Income tax;
  • National Insurance;
  • Pension contributions;
  • Student loan payments;
  • Other deductions;
Find an estimate of your salary after tax in a second by using a tax calculator. Simply input your gross salary, and the calculator instantly provides your net salary.

Take home tax calculator 2023

What is the tax rate in the United Kingdom?

Below are the tax brackets for the UK:

  • 0% for taxable incomes not exceeding £12,570
  • 20% for taxable incomes ranging from £12,570 to £50,270
  • 40% for taxable incomes from £50,271 to £125,140
  • 45% for taxable incomes beyond £125,140.

Read more about the UK tax rate.

How do you calculate salary from hourly rate UK?

In the UK, calculating a salary from an hourly rate is based on the number of hours worked per week and the number of weeks worked per year. Here is how you can calculate the annual salary from an hourly rate:

Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year

Example: Suppose someone earns £10 per hour and works 40 hours a week for the entire year:
Annual Salary = £10 × 40 × 52 = £20,800.

Try the hourly wage calculator

What is the minimum wage in the UK?

As of February 2023/2024, the minimum wage in pounds stands at £10.42 per hour.

Read more about the UK minimum wage.

What are the dates for the tax year in the UK?

The last tax year started on 6 April 2022 and ended on 5 April 2023.

When do i need to submit my tax return?

Find here the deadlines to submit your tax returns:

  • Paper return tax return : must submit it by midnight 31 October 2024
  • Online return : must submit it by midnight 31 January 2025.
Find more information on the government website.

How much is £50,000 after tax in the UK?

£50,000 a year is about £38,023 after tax in the UK for a resident (full year). You will have to pay about 24% of your salary in taxes and £4,491 in national Insurance. Numbers based on the UK Taxation Office.

How much is £45,000 after tax in the UK?

£45,000 a year is about £34,623 after tax in the UK for a resident (full year). You will have to pay about 23% of your salary in taxes and £3,891 in national Insurance. Numbers based on the UK Taxation Office.

How much is £35,000 after tax in the UK?

£35,000 a year is about £27,823 after tax in the UK for a resident (full year). You will have to pay about 21% of your salary in taxes and £2,691 in national Insurance. Numbers based on the UK Taxation Office.

Is National Insurance the same as tax in the UK?

No, National Insurance (NI) and tax are two different contributions deducted from your wage in the UK. While both are contributions to the government, Income Tax goes to the UK Treasury and is used to fund various public services. In contrast, NI contributions primarily fund state benefits, such as the State Pension and unemployment benefits.

Find out more about National Insurance and taxes in the UK

Salary calculator UK

The latest figures for April 2023/2024 are now accessible, providing you with the most current data. Utilize our Take-Home Salary Calculator to determine your salary after taxes.

For example a salary of £30,000 a year is about £24,424 after tax in the UK for a resident (full year). You will have to pay about 19% of your salary in taxes and £2,091 in national Insurance. These rates apply to individuals who are UK residents for tax purposes in 2023/2024. Numbers based on the UK Taxation Office.

Yearly salary £30,000
Income Tax £3,486
National Insurance £2,091
Income tax rates 19%
£30,000 after tax £24,423

UK tax rates: what you need to know

The percentage of tax taken out of your paycheck in the UK depends on your income and tax code. The UK uses a progressive tax system, which means that the percentage of tax you pay increases as your income goes up.

Income tax

The UK uses a progressive tax system, with tax rates based on total income for the tax year. A tax-free Personal Allowance also applies.

Here are the UK tax brackets :

0% On taxable incomes up to £12,570
20% On taxable incomes between £12,570 and £50,270
40% On taxable incomes between £50,271 and £125,140
45% On taxable incomes over £125,140

National Insurance Contributions (NICs)

In addition to income tax, individuals may also be required to pay the Medicare Levy, which funds the public health system. Both employees and employers contribute to National Insurance, with NIC rates varying based on earnings and category.

  • Class 1: Deducted from employee wages; employers also contribute.
  • Class 1A & 1B: Paid by employers on certain employee benefits.
  • Class 2: Flat rate by self-employed.
  • Class 3: Voluntary to fill NICs gaps.
  • Class 4: Based on self-employed profits.

NIC rates and thresholds differ by categories (A-J) based on work situations. For example:

  • Category A: Standard employees.
  • Category B: Some married women/widows.
  • Category C: Employees over pension age.

Pension contributions

For employees, a portion of the salary might be channeled into a pension scheme. Here's a deeper look:

  • Automatic Enrollment: Many employers automatically enroll eligible employees into a workplace pension. Unless an employee opts out, a part of their salary is contributed towards their pension.
  • Contribution Rates: Contributions to a pension scheme come from the employee, the employer, and sometimes, tax relief. The exact percentage varies based on factors like age, salary, and the pension scheme.
  • Opting Out: Employees can usually opt out of automatic enrollment. However, this means missing out on employer contributions and tax benefits.

Other deductions

Beyond taxes and pension, other deductions might be made from a paycheck:

  • Student Loan Repayments: In some places, student loan repayments are deducted once earnings cross a certain threshold. The deducted amount can be a fixed sum or a percentage of the income above the threshold.
  • Union Dues: Members of trade unions might have union fees deducted from their salaries. These dues support union activities and services.
  • Benefits: Some perks, like company cars or health insurance, might be taxable. The value of these benefits can be deducted before tax calculation or taxed as extra income.
  • Other: Other potential deductions include court-ordered payments, charitable contributions, or specific savings schemes.
  • Click here to find more information about other deductions

Understanding salary calculations in the UK

Salary Income in the United Kingdom: A Comprehensive Guide

Calculating salary in the United Kingdom involves several key factors, including gross income, deductions, and taxes. Here's a breakdown of how it typically works:

1. Gross Income

Salary calculations start with the gross income, which includes the total earnings before any deductions or taxes. Gross income encompasses the basic salary, bonuses, commissions, overtime pay, and other forms of compensation specified in the employment contract.

2. Deductions

Various deductions are made from the gross income.

  • Income Tax
  • National Insurance Contributions (NICs)
  • Pension Contributions
  • Other Deductions

3. Take-Home Pay

After all deductions, the remaining amount is the net salary, also known as take-home pay. This is the actual amount deposited into the employee's bank account and available for personal expenses.

4. Overtime and Additional Payments

Payments like overtime and bonuses may have different tax rules, rates, or exemptions, so their treatment can vary.

5. Tax Codes and Allowances

The tax calculation considers the employee's tax code, reflecting tax-free allowances and deductions. Having the correct tax code is crucial for accurate calculations.

6. Year-End Reconciliation

At the end of each tax year (April 6th to April 5th), employees receive a statement of earnings and tax paid. This period includes reconciling any overpayments or underpayments and making necessary adjustments.

Employers typically provide detailed pay statements to employees, outlining earnings and deductions. Payroll software and systems are commonly used for automation and compliance with tax and employment regulations.

Keep in mind that tax laws and rates can change yearly, and individual circumstances may vary. For precise calculations and tax advice, consult a tax professional or use specialized payroll software for UK payroll.

The UK minimum wage

As of February 2023/2024 the minimum wage in pounds is £10.42 per hour.

This rate is reviewed annually by the Fair Work Commission and may increase based on changes in the cost of living and other economic factors. It is important to note that some employees, such as those under the age of 23 or in a training arrangement, may be paid a lower minimum wage.

Earnings Range Ongoing rate
Age 23 or over £10.42
Age 21 - 22 £10.18
Age 18 - 20 £7.49
Under 18 £5.28
Apprentice £5.28