How much you take home on a £20,000 salary in the UK for 2026-27. Full income tax, National Insurance and pension breakdown.
| Component | Annual | Monthly |
|---|---|---|
| Gross salary | £20,000 | £1,667 |
| Income Tax (20%) | −£1,286 | −£107 |
| National Insurance (8%) | −£594 | −£50 |
| Pension (5%) | −£1,000 | −£83 |
| Take-home pay | £17,120 | £1,427 |
With a 5% pension contribution (salary sacrifice), your taxable income is £19,000. The first £12,570 is covered by your personal allowance and is tax-free. The remaining £6,430 is taxed at 20% basic rate, giving £1,286 in income tax per year or £107 per month.
NI is charged at 8% on earnings between the Primary Threshold (£12,570) and the Upper Earnings Limit (£50,270). On £20,000 that is 8% on £7,430, giving £594 per year (£49.50 per month). Your effective NI rate is 3.0% of gross salary.
At £20,000 you are below every student loan repayment threshold. Plan 5 starts at £25,000, Plan 1 at £24,990, and Plan 2 at £27,295. No student loan deductions apply at this salary level — your full take-home is unaffected by any loan plan.
Scottish taxpayers on £20,000 pay slightly less income tax than in England due to the 19% Starter Rate on income between £12,571 and £16,537. Scottish income tax on £20,000 is approximately £1,246 compared to £1,286 in England — around £40 per year less, giving a marginally higher take-home of approximately £17,160.
What is take-home pay on £20,000 in the UK?
On a £20,000 salary with 5% pension and no student loan, take-home pay is £17,120 per year (£1,427 per month) after £1,286 income tax and £594 NI in 2026-27.
How much income tax on £20,000?
On £20,000 with 5% pension, taxable income is £19,000. Tax is 20% on £6,430 above the personal allowance — giving £1,286 per year. Without any pension contribution, income tax would be £1,486.
Do I pay National Insurance on £20,000?
Yes. NI is 8% on earnings between £12,570 and £50,270. On £20,000 that is 8% on £7,430 = £594 per year (£49.50 per month).
Free, accurate, 2026-27 rates. Scotland and tax code supported.