Your take-home pay on a £18,000 salary — full PAYE breakdown including income tax and National Insurance.
| Component | Annual | Monthly |
|---|---|---|
| Gross Salary | £18,000 | £1,500 |
| Personal Allowance | £12,570 | £1,047 |
| Taxable Income | £5,430 | £452 |
| Income Tax (20%) | − £1,086 | − £90 |
| National Insurance (8%) | − £434 | − £36 |
| Take-Home Pay | £16,480 | £1,373 |
| Band | Rate | Income in Band | Tax Paid |
|---|---|---|---|
| Personal Allowance | 0% | £12,570 | £0 |
| Basic Rate | 20% | £5,430 | £1,086 |
| Higher Rate | 40% | £0 | £0 |
| Total | £18,000 | £1,086 |
| Band | Rate | Earnings in Band | NI Paid |
|---|---|---|---|
| Below Primary Threshold | 0% | £12,570 | £0 |
| Primary Rate | 8% | £5,430 | £434 |
| Total NI | £434 |
On a £18,000 salary you take home £16,480 per year — that is £1,373 per month or £317 per week after income tax and National Insurance in 2026/27.
You pay £434 in National Insurance on a £18,000 salary. NI is charged at 8% on earnings between £12,570 and £50,270. The first £12,570 (Primary Threshold) is NI-free.
You pay £1,086 in income tax. Your Personal Allowance covers the first £12,570 tax-free, and the remaining £5,430 is taxed at 20% (basic rate).
A £18,000 annual salary works out at approximately £8.65 per hour (40-hour week). After tax, your hourly take-home is around £8.00.
The National Living Wage for workers aged 21 and over is £12.71 per hour from April 2026, which equals approximately £26,400 per year full-time. A £18,000 salary is below this threshold on a full-time basis.