£120,000 Salary - UK Take Home Pay
If you earn £120,000 per year in the UK, you will take home £76,157 after tax and National Insurance. That's £6,346.45 per month.
Personal Allowance Taper Zone
£120,000 falls in the effective 60% tax zone. Between £100,000-£125,140, your Personal Allowance is withdrawn, creating a 60% marginal rate.
- 60% effective marginal rate in this band!
- Pension contributions here save 60% tax
- Consider timing bonuses to stay below £100k if possible
- Professional tax advice is highly recommended
How £120,000 Compares
UK salary benchmarks for 2025/26
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Your Income
Enter your salary details for 2025/26
Salary sacrifice reduces taxable income
Take Home Pay
£76,157.40/year
63.5% of gross income
- Gross Income£120,000.00
- Taxable Income£117,430.00
- Income Tax-£39,432.00
- National Insurance-£4,410.60
- Total Deductions-£43,842.60
36.5%
Effective Rate
60%
Marginal Rate
What £120,000 Affords
Based on £6,346.45/month take-home
Jobs Around £120,000
Typical roles at this salary level
£120,000 Salary Breakdown
| Description | Yearly | Monthly |
|---|---|---|
| Gross Salary | £120,000.00 | £10,000.00 |
| Personal Allowance | £2,570.00 | £214.17 |
| Taxable Income | £117,430.00 | £9,785.83 |
| Income Tax | -£39,432.00 | -£3,286.00 |
| National Insurance | -£4,410.60 | -£367.55 |
| Total Deductions | -£43,842.60 | -£3,653.55 |
| Take Home Pay | £76,157.40 | £6,346.45 |
How is £120,000 Taxed?
On a £120,000 salary, here's how your income is distributed across tax bands:
Understanding Your £120,000 Salary
A £120,000 salary in the UK for the 2025/26 tax year will result in a take-home pay of £76,157.40 per year, or £6,346.45 per month. This salary is above the UK median of £35,000.
Your effective tax rate is 36.5%, meaning for every £1 you earn, you keep approximately £0.63. Your marginal tax rate (the rate on your next £1 earned) is 60%.
This calculation assumes you have a standard Personal Allowance of £2,570, no student loan repayments, and no pension contributions. You can adjust these factors using the calculator above.