What you actually take home on a £23,000 salary in the UK for 2026-27. Full income tax, NI and pension breakdown. Near the National Living Wage.
| Component | Annual | Monthly |
|---|---|---|
| Gross salary | £23,000 | £1,917 |
| Income Tax (20%) | −£1,856 | −£155 |
| National Insurance (8%) | −£834 | −£70 |
| Pension (5%) | −£1,150 | −£96 |
| Take-home pay | £19,160 | £1,597 |
With a 5% pension contribution, taxable income is £21,850. The first £12,570 is covered by the personal allowance. Tax is 20% on £9,280 above that, giving £1,856 per year. You remain entirely within the basic rate band.
NI is charged at 8% on earnings between £12,570 and £50,270. On £23,000 that is 8% on £10,430, giving £834 per year or £70 per month. Your effective NI rate is 3.6% of gross salary.
£23,000 is just below the NLW full-time annual equivalent of £26,418. It is close to what a full-time worker on the 18-20 age group rate earns annually (£10.00/hr × 40hrs × 52 weeks = £20,800). At this salary level, student loan and pension decisions have an outsized effect on take-home — small changes in percentage deductions produce meaningful monthly differences.
Scottish taxpayers on £23,000 pay slightly less income tax than in England due to the 19% Starter Rate. Scottish income tax on £23,000 is approximately £1,816 versus £1,856 in England — around £40 per year less. Scottish take-home is approximately £19,200 per year.
What is take-home pay on £23,000 in the UK?
On a £23,000 salary with 5% pension and no student loan, take-home pay is £19,160 per year (£1,597 per month) after £1,856 income tax and £834 NI in 2026-27.
How much income tax on £23,000?
On £23,000 with 5% pension, taxable income is £21,850. Tax is 20% on £9,280 above the personal allowance — giving £1,856 per year or £155 per month.
Does Plan 5 student loan apply on £23,000?
No — Plan 5 repayments start at £25,000. On £23,000 you are below the threshold so no student loan deductions apply. Plan 1 starts at £24,990 and Plan 2 at £27,295.
Free, accurate, 2026-27 rates. Scotland and tax code supported.