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2025/26 Tax Year

£38,000 Salary - UK Take Home Pay

If you earn £38,000 per year in the UK, you will take home £30,880 after tax and National Insurance. That's £2,573.30 per month.

Gross Salary
£38,000
per year
Take Home
£30,880
per year
Monthly Net
£2,573.30
per month
Effective Tax
18.7%
tax rate

Around UK Average

£38,000 is around the UK average salary. You're still in the basic rate tax band, meaning you keep 68p of every extra £1 earned (after tax and NI).

  • You keep most of your earnings - basic rate is 20%
  • Maximize workplace pension contributions
  • Consider ISA investments (£20k annual allowance)
  • Building towards the higher rate threshold

How £38,000 Compares

UK salary benchmarks for 2025/26

vs UK Median
+9%
£35,000 median
vs UK Mean
-10%
£42,000 mean
Tax Band
20%
Basic rate
Hourly Rate
£19.49
at 37.5 hrs/week

Customise Your Calculation

Your Income

Enter your salary details for 2025/26

£
£
£
0%

Salary sacrifice reduces taxable income

Take Home Pay

£30,879.60/year

81.3% of gross income

  • Gross Income£38,000.00
  • Taxable Income£25,430.00
  • Income Tax-£5,086.00
  • National Insurance-£2,034.40
  • Total Deductions-£7,120.40

18.7%

Effective Rate

20%

Marginal Rate

What £38,000 Affords

Based on £2,573.30/month take-home

Average UK rent (1-bed)
~£900-1,200/month outside London
Affordable
London rent (1-bed zone 2-3)
~£1,600-2,000/month
Affordable
Max mortgage (4.5x)
~£171,000 borrowing capacity
Affordable
Running a car
~£300-500/month total cost
Affordable
Saving 20% of income
£514.66/month
Affordable
Family with 2 children
Childcare adds £1,000-2,000/month
Challenging

Jobs Around £38,000

Typical roles at this salary level

Senior teacher
Accountant
Software developer
Senior nurse

£38,000 Salary Breakdown

DescriptionYearlyMonthly
Gross Salary£38,000.00£3,166.67
Personal Allowance£12,570.00£1,047.50
Taxable Income£25,430.00£2,119.17
Income Tax-£5,086.00-£423.83
National Insurance-£2,034.40-£169.53
Total Deductions-£7,120.40-£593.37
Take Home Pay£30,879.60£2,573.30

How is £38,000 Taxed?

On a £38,000 salary, here's how your income is distributed across tax bands:

Personal Allowance
Tax-free income
£12,570
0%
Basic Rate
Taxed at basic rate
£25,430
20%

Understanding Your £38,000 Salary

A £38,000 salary in the UK for the 2025/26 tax year will result in a take-home pay of £30,879.60 per year, or £2,573.30 per month. This salary is above the UK median of £35,000.

Your effective tax rate is 18.7%, meaning for every £1 you earn, you keep approximately £0.81. 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.