How £18,000 is taxed
The first £12,570 is tax-free. The remaining £5,430 all falls in the 20.0% basic rate band, so Income Tax is £1,086. National Insurance is 8% of your earnings above £12,570: £434.40.
Altogether, Income Tax and National Insurance take 8.4% of your salary. Of your next £1,000 pay rise, you'd keep £720.00.
£18,000 as an hourly wage
£18,000 a year works out at £9.23 an hour on a 37.5-hour week, or £8.65 on a 40-hour week, before tax. See £11 an hour for take-home pay at an hourly rate.
What changes your take-home
The same £18,000 salary in some common situations, compared with the figures above.
| Situation | Per month | Per year | Difference |
|---|---|---|---|
| Standard (as above) | £1,373.30 | £16,479.60 | - |
| With a 5% salary sacrifice pension | £1,319.30 | £15,831.60 | −£648.00 |
| With a Plan 2 student loan | £1,373.30 | £16,479.60 | - |
| With a Plan 5 student loan | £1,373.30 | £16,479.60 | - |
| Paying Scottish Income Tax | £1,376.61 | £16,519.27 | +£39.67 |
In Scotland, take-home on £18,000 is £16,519.27 a year: £39.67 more than in the rest of the UK, because Scotland sets its own Income Tax bands. A salary sacrifice pension costs you less than it puts in your pot because it comes off before tax and National Insurance.
Nearby salaries
| Salary | Take-home per month | Take-home per year |
|---|---|---|
| £15,000 after tax | £1,193.30 | £14,319.60 |
| £16,000 after tax | £1,253.30 | £15,039.60 |
| £17,000 after tax | £1,313.30 | £15,759.60 |
| £19,000 after tax | £1,433.30 | £17,199.60 |
| £20,000 after tax | £1,493.30 | £17,919.60 |
| £21,000 after tax | £1,553.30 | £18,639.60 |
See take-home pay for every salary from £15,000 to £200,000.