Where the money goes
| Year | Month | Week | |
|---|---|---|---|
| Salary | £97,000 | £8,083 | £1,865 |
| Income Tax | £26,232 | £2,186 | £504 |
| National Insurance | £3,951 | £329 | £76 |
| Take-home pay | £66,817 | £5,568 | £1,285 |
Out of every £100 you earn, you keep about £69. 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 £84,430.
| Band | Rate | Income in band | Tax |
|---|---|---|---|
| Tax-free allowance | 0% | £12,570 | £0 |
| Basic rate | 20% | £37,700 | £7,540 |
| Higher rate | 40% | £46,730 | £18,692 |
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 £97,000 that comes to £3,951 a year, or £329 a month. National Insurance is the same in every part of the UK, and you stop paying it once you reach State Pension age.
£97,000 after tax in Scotland
Scotland sets its own Income Tax bands. On £97,000 a Scottish taxpayer pays £29,382 Income Tax and takes home £63,667 a year (£5,306 a month), £3,150 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% | £31,338 | £13,162 |
| Advanced rate | 45% | £22,000 | £9,900 |
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 £97,000. 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 | £66,817 | £5,568 |
| 5% pension by salary sacrifice | £4,850 | £0 | £64,004 | £5,334 |
| Plan 2 student loan | £0 | £6,085 | £60,732 | £5,061 |
| Plan 5 student loan | £0 | £6,480 | £60,337 | £5,028 |
| 5% pension and Plan 2 loan | £4,850 | £5,649 | £58,356 | £4,863 |
Your tax rates
Part of your salary is above £50,270, so it is taxed at the 40% higher rate, but National Insurance drops to 2% there. Each extra £100 costs 42%, leaving about £58. Paying more into a pension saves 40% tax on that slice.
Per hour, day and week
| Before tax | After tax | |
|---|---|---|
| Per hour (37.5 hours a week) | £49.74 | £34.27 |
| Per day (5 days a week) | £373.08 | £256.99 |
| Per week | £1,865 | £1,285 |
| Per month | £8,083 | £5,568 |
Nearby salaries
| Salary | Take-home a year | A month |
|---|---|---|
| £94,000 after tax | £65,077 | £5,423 |
| £95,000 after tax | £65,657 | £5,471 |
| £96,000 after tax | £66,237 | £5,520 |
| £97,000 | £66,817 | £5,568 |
| £98,000 after tax | £67,397 | £5,616 |
| £99,000 after tax | £67,977 | £5,665 |
| £100,000 after tax | £68,557 | £5,713 |
See every salary from £15,000 to £250,000, or work out any figure with the salary calculator.