Everything in this range is taxed at the basic 20% rate, so the maths is refreshingly simple. Your first £12,570 is covered by the personal allowance and taxed at nothing. Every pound above that, up to £25,000, is taxed at 20%, plus 8% National Insurance once you pass £12,570. There's no higher-rate tax to worry about and no allowance taper. The table below shows the take-home on each salary from £18,000 to £25,000.
Use the full calculator for your exact salary, student loan, pension and Scottish rates| Salary | Income tax | NI | Take-home / yr | Per month |
|---|---|---|---|---|
| £18,000 | £1,086 | £434 | £16,480 | £1,373 |
| £19,000 | £1,286 | £514 | £17,200 | £1,433 |
| £20,000 | £1,486 | £594 | £17,920 | £1,493 |
| £21,000 | £1,686 | £674 | £18,640 | £1,553 |
| £22,000 | £1,886 | £754 | £19,360 | £1,613 |
| £23,000 | £2,086 | £834 | £20,080 | £1,673 |
| £24,000 | £2,286 | £914 | £20,800 | £1,733 |
| £25,000 | £2,486 | £994 | £21,520 | £1,793 |
Figures assume tax code 1257L, no student loan and no pension. See our methodology.
The combined marginal rate here is 28%: 20% income tax and 8% National Insurance on each extra pound. So a £1,000 pay rise from £20,000 to £21,000 puts about £720 in your pocket, not the full £1,000. That's worth remembering when you're weighing up a raise or extra hours.
A £20,000 salary works out at roughly £1,493 a month after tax. That sits below the UK median full-time wage of £34,963 (ONS, 2024), and roughly the bottom third of full-time earners are in this range. If you're paid hourly, £20,000 is about £10.26 an hour before tax on a 37.5-hour week, close to the National Living Wage.
National Insurance is the deduction people in this band often overlook. It only starts above £12,570, so on £18,000 you pay 8% on just £5,430, about £434 a year. As your salary climbs toward £25,000 the NI bill grows in step, because more of your pay sits in the 8% band.
| Gross salary | £20,000.00 |
| Personal allowance | £12,570.00 |
| Income tax | £1,486.00 |
| National Insurance | £594.40 |
| Take-home pay | £17,919.60 |
On £20,000 that's about £1,493.30 a month, an effective tax rate of 10.4%.
Do you pay tax on £20,000 a year?
Yes, but only on part of it. The first £12,570 is your personal allowance and is tax-free. The remaining £7,430 is taxed at 20%, which is £1,486. You also pay 8% National Insurance on earnings above £12,570. Take-home on £20,000 is about £17,920 a year, or £1,493 a month.
What is £25,000 after tax?
On a £25,000 salary in 2026/27 you take home about £21,519 a year, which is roughly £1,793 a month. That is after £2,486 income tax and £994 National Insurance, assuming tax code 1257L with no student loan or pension.
Is £22,000 a good salary in the UK?
It is below the UK median of £34,963 but above the minimum wage for a full-time job. Whether it stretches far depends heavily on where you live and your housing costs. In lower-cost regions it covers a modest single-person budget; in London it is tight.