£29,000 Salary After Tax 2025/26
Tax year 6 April 2025 – 5 April 2026 · England, Wales & Northern Ireland
Full Tax Breakdown – £29,000 Salary 2025/26
| Component | Calculation | Amount |
|---|---|---|
| Gross Salary | — | £29,000.00 |
| Personal Allowance | Standard 2025/26 | −£12,570.00 |
| Taxable Income | £29,000 − £12,570 | £16,430.00 |
| Basic Rate Tax (20%) | £16,430 × 20% | −£3,286.00 |
| Higher Rate Tax (40%) | N/A (below £50,270) | £0.00 |
| Total Income Tax | −£3,286.00 | |
| NI (8% Class 1) | £16,430 × 8% | −£1,314.40 |
| Total Deductions | Tax + NI | −£4,600.40 |
| Net Take-Home Pay | £29,000 − £4,600.40 | £24,399.60 |
Pay Period Breakdown
| Period | Gross | Income Tax | National Insurance | Net Take-Home |
|---|---|---|---|---|
| Annual | £29,000.00 | £3,286.00 | £1,314.40 | £24,399.60 |
| Monthly | £2,416.67 | £273.83 | £109.53 | £2,033.30 |
| 4-Weekly | £2,230.77 | £252.77 | £101.11 | £1,876.89 |
| Weekly | £557.69 | £63.19 | £25.28 | £469.22 |
| Daily (5-day week) | £111.54 | £12.64 | £5.06 | £93.84 |
| Hourly (37.5hr week) | £14.87 | £1.69 | £0.67 | £12.51 |
Where Your £29,000 Goes
What Does a £29,000 Salary Mean in Practice?
A £29,000 salary in 2025/26 gives you a take-home pay of £24,399.60 per year — roughly £2,033 per month to cover all your living costs. This salary sits below the UK median full-time wage of approximately £34,963, but it is well above the National Living Wage annual equivalent (approximately £22,360 for a full-time 35-hour week at £12.21/hour). For many workers in the UK — particularly those in administrative, retail, hospitality, or early-career roles — £29,000 represents a significant first step into professional pay.
Being a basic rate taxpayer at £29,000 means your marginal rate is 28% (20% income tax plus 8% National Insurance). You are nowhere near the higher rate threshold of £50,270, which means every pound you earn — and every pound of pension contributions you make — benefits from basic rate tax relief only.
Monthly Budget at £2,033.30 Take-Home
Managing a monthly income of £2,033.30 requires careful budgeting, especially in higher-cost areas of the UK. Here is a typical breakdown for someone earning £29,000:
| Expense Category | Estimated Monthly Cost | % of Take-Home |
|---|---|---|
| Rent / Mortgage | £600 – £900 | 30% – 44% |
| Council Tax & Utilities | £150 – £250 | 7% – 12% |
| Groceries & Food | £200 – £350 | 10% – 17% |
| Transport | £100 – £250 | 5% – 12% |
| Savings & Pension | £100 – £200 | 5% – 10% |
| Leisure & Lifestyle | £100 – £200 | 5% – 10% |
| Remaining / Buffer | £83 – £633 | 4% – 31% |
Mortgage Affordability at £29,000
At £29,000 gross salary, most UK mortgage lenders will typically offer 4x to 4.5x income, meaning you could potentially borrow between £116,000 and £130,500. With a 10% deposit, this could allow purchase of a property worth up to £130,000–£145,000. Whilst this is challenging in London and the South East, it is achievable in many parts of the Midlands, North of England, Wales, and Northern Ireland, where house prices remain more affordable.
Pension Contributions at £29,000
Student Loan Repayments
If you have a Plan 2 student loan, you repay 9% on income above £27,295. On a £29,000 salary, this is 9% × (£29,000 − £27,295) = 9% × £1,705 = £153.45 per year (£12.79/month). This would reduce your actual take-home to approximately £24,246.15/year or £2,020.51/month — a relatively small reduction given your salary is just above the threshold.
How to Increase Your Take-Home Pay at £29,000
- Check your tax code: The standard tax code for 2025/26 is 1257L. If yours differs, you may be paying too much or too little tax.
- Claim the Marriage Allowance: If your spouse earns below £12,570, they can transfer up to £1,260 of their unused personal allowance to you, saving you £252/year.
- Use your ISA allowance: Save up to £20,000 tax-free each year in a Cash ISA or Stocks and Shares ISA to shield interest and investment gains from tax.
- Salary sacrifice schemes: If your employer offers salary sacrifice for pensions, bikes, or technology, these reduce your gross taxable pay and save you both income tax and NI.
- Tax-Free Childcare: If you have children under 12, the Government's Tax-Free Childcare scheme pays 20% of childcare costs, up to £2,000 per child per year.
Progression from £29,000
A step up from £29,000 to £32,000 would add approximately £2,520 to your annual take-home (£210/month extra after tax and NI). Moving from £29,000 to £35,000 would increase net pay by about £4,320/year (£360/month). These figures illustrate how the 28% marginal rate (20% tax + 8% NI) erodes pay rises at this income level — but still leaves you better off with every promotion.
Tax Bands Explained for £29,000
| Band | Income Range | Rate | Tax Paid |
|---|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% | £0.00 |
| Basic Rate | £12,571 – £29,000 | 20% | £3,286.00 |
| Higher Rate | £50,271 – £125,140 | 40% | £0.00 (not reached) |
| Additional Rate | Over £125,140 | 45% | £0.00 (not reached) |
| Total Income Tax | £3,286.00 | ||
National Insurance Bands
| Band | Earnings Range | Rate | NI Paid |
|---|---|---|---|
| Below Primary Threshold | £0 – £12,570 | 0% | £0.00 |
| Primary Threshold to UEL | £12,571 – £29,000 | 8% | £1,314.40 |
| Above UEL | Over £50,270 | 2% | £0.00 (not reached) |
| Total National Insurance | £1,314.40 | ||
Frequently Asked Questions
What is the take-home pay for a £29,000 salary in 2025/26?
For a £29,000 gross salary in 2025/26, your take-home pay is £24,399.60 per year, which works out to £2,033.30 per month, £469.22 per week, and £93.84 per day (based on a 5-day working week). These figures assume the standard personal allowance with no additional deductions such as student loans or salary sacrifice arrangements.
How much income tax do I pay on a £29,000 salary?
You pay £3,286.00 in income tax on a £29,000 salary for 2025/26. This is calculated as 20% on your taxable income of £16,430 (your £29,000 gross salary minus the £12,570 personal allowance). Your entire salary falls within the basic rate band — you are £21,270 below the higher rate threshold of £50,270, so no 40% tax applies.
How much National Insurance do I pay at £29,000?
You pay £1,314.40 in National Insurance on a £29,000 salary in 2025/26. This is calculated at 8% on earnings between the Primary Threshold (£12,570) and your salary of £29,000 — a band of £16,430. You do not cross the Upper Earnings Limit of £50,270, so you pay no 2% NI on any portion of your income.
Is £29,000 a good salary in the UK in 2025?
£29,000 is below the UK median full-time salary of approximately £34,963. Whether it feels comfortable depends heavily on where you live. In lower-cost areas such as the North East, Wales, or Northern Ireland, £29,000 can support a reasonable lifestyle. In London or the South East, it is tight. That said, £29,000 is a common salary level for early-career professionals, apprentices who have completed training, and many public sector roles.
What is the effective tax rate on a £29,000 salary?
The effective income tax rate at £29,000 is 11.33% (£3,286 ÷ £29,000). The effective total deduction rate including National Insurance is 15.86% (£4,600.40 ÷ £29,000). The marginal rate — the rate you pay on each additional pound earned — is 28% (20% income tax + 8% NI).
What happens if I get a pay rise from £29,000?
Any pay rise you receive above £29,000 will be taxed at the marginal rate of 28% (20% income tax + 8% NI) until your salary reaches £50,270. Above that, the marginal rate rises to 42% (40% + 2%). For example, a £1,000 pay rise at £29,000 would add £720 to your annual take-home pay (£60/month). A £5,000 rise would add £3,600/year.
Does student loan repayment affect take-home pay at £29,000?
If you have a Plan 2 student loan, repayments begin at 9% on income above £27,295. At £29,000, you would repay 9% × £1,705 = £153.45/year (£12.79/month), reducing your monthly take-home slightly to around £2,020.51. Plan 1 loan holders repay at 9% above £22,015, so repayments would be 9% × £6,985 = £628.65/year (£52.39/month), giving a monthly take-home of approximately £1,980.91.
Comparing £29,000 to Other Salaries
| Gross Salary | Annual Net | Monthly Net | Tax Paid | NI Paid |
|---|---|---|---|---|
| £25,000 | £21,199.60 | £1,766.63 | £2,486.00 | £1,314.40 |
| £27,000 | £22,799.60 | £1,899.97 | £2,886.00 | £1,314.40 |
| £29,000 (you) | £24,399.60 | £2,033.30 | £3,286.00 | £1,314.40 |
| £32,000 | £26,919.60 | £2,243.30 | £3,886.00 | £1,554.40 |
| £35,000 | £28,719.60 | £2,393.30 | £4,486.00 | £1,794.40 |
Tips to Maximise Your £29,000 Take-Home Pay
- Check your tax code: HMRC sometimes issues incorrect tax codes. The standard 2025/26 code is 1257L. Verify yours on your payslip or via the HMRC app. An incorrect code could mean overpaying tax.
- Claim the Marriage Allowance: If your spouse or civil partner earns below £12,570, they can transfer £1,260 of their personal allowance to you, saving you £252/year in income tax.
- Pension salary sacrifice: Ask your employer if pension contributions can be made via salary sacrifice. This reduces both your income tax and NI, effectively giving you more pension for less cost.
- ISA savings: Use your £20,000 annual ISA allowance to shelter savings interest. Basic rate taxpayers have a £1,000 Personal Savings Allowance, but ISAs provide unlimited tax-free interest.
- Workplace benefits: Take advantage of Cycle to Work, childcare vouchers, and any other salary sacrifice schemes your employer offers — all reduce your taxable pay.
- Claim all eligible tax relief: If you work from home, you may be able to claim the HMRC £6/week working from home allowance. If you buy uniform or tools for work, you may be able to claim flat-rate expenses.