Where the money goes
| Year | Month | Week | |
|---|---|---|---|
| Salary | £18,000 | £1,500 | £346 |
| Income Tax | £1,086 | £91 | £21 |
| National Insurance | £434 | £36 | £8 |
| Take-home pay | £16,480 | £1,373 | £317 |
Out of every £100 you earn, you keep about £92. Your payslip may differ by a few pounds because payroll works each pay period separately.
Income Tax band by band
The first £12,570 is your tax-free Personal Allowance. Income Tax is charged on the remaining £5,430.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Basic rate | 20% | £5,430 | £1,086 |
National Insurance
Employees pay Class 1 National Insurance of 8% on earnings between £12,570 and £50,270 a year, and 2% above that. On £18,000 that comes to £434 a year, or £36 a month. National Insurance is the same in every part of the UK, and you stop paying it once you reach State Pension age.
£18,000 after tax in Scotland
Scotland sets its own Income Tax bands. On £18,000 a Scottish taxpayer pays £1,046 Income Tax and takes home £16,519 a year (£1,377 a month), £40 more than in the rest of the UK.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Starter rate | 19% | £3,967 | £754 |
| Basic rate | 20% | £1,463 | £293 |
With a pension or student loan
Most employees pay into a workplace pension, and many repay a student loan. This is how they change take-home pay on £18,000. A salary sacrifice pension is taken before tax and National Insurance, so it costs you less than its face value.
| Pension | Student loan | Take-home a year | A month | |
|---|---|---|---|---|
| No pension or student loan | £0 | £0 | £16,480 | £1,373 |
| 5% pension by salary sacrifice | £900 | £0 | £15,832 | £1,319 |
| Plan 2 student loan | £0 | £0 | £16,480 | £1,373 |
| Plan 5 student loan | £0 | £0 | £16,480 | £1,373 |
| 5% pension and Plan 2 loan | £900 | £0 | £15,832 | £1,319 |
Your tax rates
You are a basic rate taxpayer. Each extra £100 of salary costs you 28% in Income Tax and National Insurance (20% tax and 8% NI), so you keep about £72.
Per hour, day and week
| Before tax | After tax | |
|---|---|---|
| Per hour (37.5 hours a week) | £9.23 | £8.45 |
| Per day (5 days a week) | £69.23 | £63.38 |
| Per week | £346 | £317 |
| Per month | £1,500 | £1,373 |
Nearby salaries
| Salary | Take-home a year | A month |
|---|---|---|
| £15,000 after tax | £14,320 | £1,193 |
| £16,000 after tax | £15,040 | £1,253 |
| £17,000 after tax | £15,760 | £1,313 |
| £18,000 | £16,480 | £1,373 |
| £19,000 after tax | £17,200 | £1,433 |
| £20,000 after tax | £17,920 | £1,493 |
| £21,000 after tax | £18,640 | £1,553 |
See every salary from £15,000 to £250,000, or work out any figure with the salary calculator.