£20,000 Salary - UK Take Home Pay
If you earn £20,000 per year in the UK, you will take home £17,920 after tax and National Insurance. That's £1,493.30 per month.
Below Living Wage Level
£20,000 is below the annual equivalent of the Real Living Wage. You may be eligible for benefits or tax credits to supplement your income.
- Check eligibility for Universal Credit
- Council Tax Reduction may be available
- Free NHS prescriptions with certain benefits
- Consider Pension Credit if applicable
How £20,000 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
£17,919.60/year
89.6% of gross income
- Gross Income£20,000.00
- Taxable Income£7,430.00
- Income Tax-£1,486.00
- National Insurance-£594.40
- Total Deductions-£2,080.40
10.4%
Effective Rate
20%
Marginal Rate
What £20,000 Affords
Based on £1,493.30/month take-home
Jobs Around £20,000
Typical roles at this salary level
£20,000 Salary Breakdown
| Description | Yearly | Monthly |
|---|---|---|
| Gross Salary | £20,000.00 | £1,666.67 |
| Personal Allowance | £12,570.00 | £1,047.50 |
| Taxable Income | £7,430.00 | £619.17 |
| Income Tax | -£1,486.00 | -£123.83 |
| National Insurance | -£594.40 | -£49.53 |
| Total Deductions | -£2,080.40 | -£173.37 |
| Take Home Pay | £17,919.60 | £1,493.30 |
How is £20,000 Taxed?
On a £20,000 salary, here's how your income is distributed across tax bands:
Understanding Your £20,000 Salary
A £20,000 salary in the UK for the 2025/26 tax year will result in a take-home pay of £17,919.60 per year, or £1,493.30 per month. This salary is below the UK median of £35,000.
Your effective tax rate is 10.4%, meaning for every £1 you earn, you keep approximately £0.90. Your marginal tax rate (the rate on your next £1 earned) is 20%.
This calculation assumes you have a standard Personal Allowance of £12,570, no student loan repayments, and no pension contributions. You can adjust these factors using the calculator above.