£21,000 Salary After Tax UK 2026
Comprehensive breakdown of your take-home pay, tax contributions, and purchasing power.
At a Glance: £21k After Tax
Yearly Net Pay
£18,640
Monthly Net Pay
£1,553
Weekly Net Pay
£359
Earning a £21,000 salary in the UK places you in the entry-level bracket of the income spectrum for the 2025/2026 tax year. Understanding exactly what lands in your bank account is crucial for budgeting, planning rent, or saving for the future. Below, we break down your payslip using the latest tax codes and National Insurance rates.
Full Tax Breakdown 2026
Based on a standard tax code (1257L), here is how your £21,000 gross salary is calculated:
| Description | Annual | Monthly | Weekly |
|---|---|---|---|
| Gross Income | £21,000 | £1,750 | £404 |
| Taxable Income | £8,430 | £702 | £162 |
| Income Tax (20%) | -£1,686 | -£141 | -£32 |
| National Insurance (8%) | -£674 | -£56 | -£13 |
| Total Deductions | -£2,360 | -£197 | -£45 |
| Net Pay (Take Home) | £18,640 | £1,553 | £359 |
Detailed Income Analysis
Income Tax
In the 2025/2026 tax year, the standard Personal Allowance remains at £12,570. This is the amount you can earn tax-free. On a salary of £21,000, your taxable income is calculated as £21,000 minus £12,570, which equals £8,430. This amount is taxed at the Basic Rate of 20%, resulting in an annual deduction of £1,686.
National Insurance
National Insurance contributions (NICs) are calculated on earnings above the primary threshold. For this calculation, we have applied the Class 1 rate of approximately 8% on earnings between the threshold (approx. £12,570) and the upper limit. This results in a yearly deduction of roughly £674. Note that NI rates can fluctuate with fiscal updates, so it is always worth checking the latest budget announcements.
Student Loans
Student loan repayments depend heavily on which plan you are on. Repayments are only made when your income exceeds a specific threshold.
- Plan 1: The threshold is approximately £24,990 (adjusted annually). Since £21,000 is below this, you pay £0.
- Plan 2: The threshold is £27,295. As your income of £21,000 is below this, you pay £0.
- Plan 5: For newer loans, the threshold is £25,000. Again, at £21,000, you are below the repayment threshold.
- Postgraduate Loan: Threshold is £21,000. You would only pay 6% on amounts *above* this. At exactly £21k, the repayment is effectively zero.
Living on £21,000 in the UK
Common Jobs at £21k
A salary of £21,000 is common for entry-level positions or roles in the service and care sectors. Typical jobs offering this salary include:
- Bank Cashier: Handling transactions and customer service in branches.
- Post Office Clerk: Processing mail and administrative tasks.
- Nursery Nurse: Providing care for young children (often requires Level 2/3 qualifications).
- Receptionist: Front-of-house administration for corporate offices or medical practices.
- Retail Supervisor: Managing shifts and staff in retail environments.
National Living Wage Context
With the National Living Wage (NLW) rising, a salary of £21,000 is increasingly close to the statutory minimum for full-time workers. If the NLW is around £12.21 per hour (estimated 2026 range), a full-time worker (37.5 hours) would earn considerably more than £21k. Therefore, a £21,000 salary often represents a part-time role (approx. 33 hours/week) or an apprenticeship rate, rather than a full-time standard adult wage.
Budgeting Your £1,553 Monthly Income
Managing a monthly budget of £1,553 requires discipline, especially with the cost of living.
- Housing: Aim to spend £500-£600. In many UK cities, this means a room in a shared house rather than a private flat.
- Utilities & Council Tax: If living alone, remember you can claim a 25% single person discount on Council Tax. If on a low income, you might qualify for a Council Tax Reduction.
- Food: A budget of £150-£200 per month is reasonable for one person cooking from scratch.
- Transport: Costs vary wildly. A bus pass might cost £60-£80, whereas running a car will consume a larger chunk of your net pay.
Benefits and Support
At this income level, you may be entitled to additional support:
- Council Tax Reduction: Low-income households can apply to their local council for a reduction in bills.
- Free School Meals: If you have children, your income might be slightly above the threshold for some automatic entitlements (often £7,400 net earnings excluding benefits), but it is worth checking eligibility for Universal Credit which acts as a gateway to these benefits.
- Marriage Allowance: If you are married and your partner earns less than the Personal Allowance, they can transfer £1,260 of their allowance to you, saving you up to £252 a year in tax.
Frequently Asked Questions
1. Is £21,000 a good salary for a single person?
It is a modest salary. While manageable in areas with lower costs of living (like the North East or Wales), it will be tight in the South East or London. You will likely need to budget carefully and may need to share accommodation.
2. How much is £21k after tax per week?
Your weekly take-home pay is approximately £359. This assumes a standard tax code and no student loan deductions.
3. Will I pay more tax if I do overtime?
Yes. Any overtime will be taxed at your marginal rate. Since you are a basic rate taxpayer, 20% of your overtime earnings will go to Income Tax, plus 8% for National Insurance. You keep 72p of every £1 earned in overtime.
4. How does £21k compare to the average UK salary?
The average UK full-time salary is roughly £35,000 - £38,000. Therefore, £21,000 is significantly below the national average, often associated with early-career roles or part-time work.
5. What pension contributions should I make?
Under auto-enrolment, you will likely contribute 5% of your qualifying earnings, and your employer 3%. On £21k, a 5% contribution might reduce your monthly take-home pay by around £50-£60, but it is highly recommended for long-term savings.
6. Can I get a mortgage on £21k?
Yes, but the borrowing amount will be limited. Lenders typically offer 4.5x your salary, which would be around £94,500. This might buy a property in some northern regions but would be insufficient for most of the UK without a substantial deposit or a partner's income.
7. Why is my take-home pay different from this calculation?
Your tax code might not be 1257L (e.g., if you have medical benefits or underpaid tax from previous years). You might also be paying into a pension, repaying a student loan, or have other payroll deductions like cycle-to-work schemes.
Disclaimer: This article is for information purposes only and utilizes 2025/2026 tax year estimates. Tax laws are subject to change. Consult a qualified accountant for professional advice.