Where the money goes
| Year | Month | Week | |
|---|---|---|---|
| Salary | £48,000 | £4,000 | £923 |
| Income Tax | £7,086 | £591 | £136 |
| National Insurance | £2,834 | £236 | £55 |
| Take-home pay | £38,080 | £3,173 | £732 |
Out of every £100 you earn, you keep about £79. 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 £35,430.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Basic rate | 20% | £35,430 | £7,086 |
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 £48,000 that comes to £2,834 a year, or £236 a month. National Insurance is the same in every part of the UK, and you stop paying it once you reach State Pension age.
£48,000 after tax in Scotland
Scotland sets its own Income Tax bands. On £48,000 a Scottish taxpayer pays £8,142 Income Tax and takes home £37,024 a year (£3,085 a month), £1,056 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% | £4,338 | £1,822 |
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 £48,000. 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 | £38,080 | £3,173 |
| 5% pension by salary sacrifice | £2,400 | £0 | £36,352 | £3,029 |
| Plan 2 student loan | £0 | £1,675 | £36,404 | £3,034 |
| Plan 5 student loan | £0 | £2,070 | £36,010 | £3,001 |
| 5% pension and Plan 2 loan | £2,400 | £1,459 | £34,892 | £2,908 |
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) | £24.62 | £19.53 |
| Per day (5 days a week) | £184.62 | £146.46 |
| Per week | £923 | £732 |
| Per month | £4,000 | £3,173 |
Nearby salaries
| Salary | Take-home a year | A month |
|---|---|---|
| £45,000 after tax | £35,920 | £2,993 |
| £46,000 after tax | £36,640 | £3,053 |
| £47,000 after tax | £37,360 | £3,113 |
| £48,000 | £38,080 | £3,173 |
| £49,000 after tax | £38,800 | £3,233 |
| £50,000 after tax | £39,520 | £3,293 |
| £51,000 after tax | £40,137 | £3,345 |
See every salary from £15,000 to £250,000, or work out any figure with the salary calculator.