How £20,000 is taxed
The first £12,570 is tax-free. The remaining £7,430 all falls in the 20.0% basic rate band, so Income Tax is £1,486. National Insurance is 8% of your earnings above £12,570: £594.40.
Altogether, Income Tax and National Insurance take 10.4% of your salary. Of your next £1,000 pay rise, you'd keep £720.00.
£20,000 as an hourly wage
£20,000 a year works out at £10.26 an hour on a 37.5-hour week, or £9.62 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 £20,000 salary in some common situations, compared with the figures above.
| Situation | Per month | Per year | Difference |
|---|---|---|---|
| Standard (as above) | £1,493.30 | £17,919.60 | - |
| With a 5% salary sacrifice pension | £1,433.30 | £17,199.60 | −£720.00 |
| With a Plan 2 student loan | £1,493.30 | £17,919.60 | - |
| With a Plan 5 student loan | £1,493.30 | £17,919.60 | - |
| Paying Scottish Income Tax | £1,496.61 | £17,959.27 | +£39.67 |
In Scotland, take-home on £20,000 is £17,959.27 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 |
|---|---|---|
| £17,000 after tax | £1,313.30 | £15,759.60 |
| £18,000 after tax | £1,373.30 | £16,479.60 |
| £19,000 after tax | £1,433.30 | £17,199.60 |
| £21,000 after tax | £1,553.30 | £18,639.60 |
| £22,000 after tax | £1,613.30 | £19,359.60 |
| £23,000 after tax | £1,673.30 | £20,079.60 |
See take-home pay for every salary from £15,000 to £200,000.