Where the money goes
| Year | Month | Week | |
|---|---|---|---|
| Salary | £45,000 | £3,750 | £865 |
| Income Tax | £6,486 | £541 | £125 |
| National Insurance | £2,594 | £216 | £50 |
| Take-home pay | £35,920 | £2,993 | £691 |
Out of every £100 you earn, you keep about £80. 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 £32,430.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Basic rate | 20% | £32,430 | £6,486 |
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 £45,000 that comes to £2,594 a year, or £216 a month. National Insurance is the same in every part of the UK, and you stop paying it once you reach State Pension age.
£45,000 after tax in Scotland
Scotland sets its own Income Tax bands. On £45,000 a Scottish taxpayer pays £6,882 Income Tax and takes home £35,524 a year (£2,960 a month), £396 less 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% | £12,989 | £2,598 |
| Intermediate rate | 21% | £14,136 | £2,969 |
| Higher rate | 42% | £1,338 | £562 |
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 £45,000. 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 | £35,920 | £2,993 |
| 5% pension by salary sacrifice | £2,250 | £0 | £34,300 | £2,858 |
| Plan 2 student loan | £0 | £1,405 | £34,514 | £2,876 |
| Plan 5 student loan | £0 | £1,800 | £34,120 | £2,843 |
| 5% pension and Plan 2 loan | £2,250 | £1,203 | £33,097 | £2,758 |
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) | £23.08 | £18.42 |
| Per day (5 days a week) | £173.08 | £138.15 |
| Per week | £865 | £691 |
| Per month | £3,750 | £2,993 |
Nearby salaries
| Salary | Take-home a year | A month |
|---|---|---|
| £42,000 after tax | £33,760 | £2,813 |
| £43,000 after tax | £34,480 | £2,873 |
| £44,000 after tax | £35,200 | £2,933 |
| £45,000 | £35,920 | £2,993 |
| £46,000 after tax | £36,640 | £3,053 |
| £47,000 after tax | £37,360 | £3,113 |
| £48,000 after tax | £38,080 | £3,173 |
See every salary from £15,000 to £250,000, or work out any figure with the salary calculator.