£40,000 Salary - UK Take Home Pay
If you earn £40,000 per year in the UK, you will take home £32,320 after tax and National Insurance. That's £2,693.30 per month.
Around UK Average
£40,000 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 £40,000 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
£32,319.60/year
80.8% of gross income
- Gross Income£40,000.00
- Taxable Income£27,430.00
- Income Tax-£5,486.00
- National Insurance-£2,194.40
- Total Deductions-£7,680.40
19.2%
Effective Rate
20%
Marginal Rate
What £40,000 Affords
Based on £2,693.30/month take-home
Jobs Around £40,000
Typical roles at this salary level
£40,000 Salary Breakdown
| Description | Yearly | Monthly |
|---|---|---|
| Gross Salary | £40,000.00 | £3,333.33 |
| Personal Allowance | £12,570.00 | £1,047.50 |
| Taxable Income | £27,430.00 | £2,285.83 |
| Income Tax | -£5,486.00 | -£457.17 |
| National Insurance | -£2,194.40 | -£182.87 |
| Total Deductions | -£7,680.40 | -£640.03 |
| Take Home Pay | £32,319.60 | £2,693.30 |
How is £40,000 Taxed?
On a £40,000 salary, here's how your income is distributed across tax bands:
Understanding Your £40,000 Salary
A £40,000 salary in the UK for the 2025/26 tax year will result in a take-home pay of £32,319.60 per year, or £2,693.30 per month. This salary is above the UK median of £35,000.
Your effective tax rate is 19.2%, 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.