£20,000 salary after tax in the UK

On a £20,000 salary in the UK you pay £1,486 income tax and £594 in social contributions, taking home £17,920 a year — £1,493 a month.

You keep 90% of your pay; your marginal rate on the next £1 you earn is 28%.

Pay before tax100% of pay£20,000 a year
A month: £1,667
A year: £20,000
Income tax7.4% of pay−£1,486 a year
A month: −£124
A year: −£1,486
The 2026 bands, in British Pound

Tax-free allowance: £12,570 a year for each earner

Income-tax bands of UK, 2026, in British Pound
Taxable income (after allowance)RateTax
£0 to £37,70020%£1,486
£37,700 to £125,140 — not reached at this pay40%£0
over £125,140 — not reached at this pay45%£0

Your taxable income is your pay minus your allowance and other deductions: £7,430 a year.

National Insurance3% of pay · 8% before reductions−£594 a year
A month: −£50
A year: −£594
Take-home pay89.6% of pay£17,920 a year
A month: £1,493
A year: £17,920

UK's 2026 rules for one employee. Source

Other taxes you will meet

  • VAT 20%
  • tax on investment gains 18%

Good to know

  • Scotland has its own income-tax bands; these are the rates for England, Wales and Northern Ireland.

The same pay in other countries

Frequently asked questions

How much tax do I pay on £20k in the UK?

On £20,000 in the UK you pay £1,486 income tax and £594 in social contributions — £2,080 in total, 10.4% of your pay.

What is the take-home pay on £20,000 in the UK?

You take home £17,920 a year, £1,493 a month — 90% of your pay.

What is my marginal tax rate on £20,000?

Your marginal rate — what you pay on the next £1 you earn — is 28%.

2026 rules checked against gov.uk. Single person, employee, no other income. Not tax advice. Change the details

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