£28,000 Salary After Tax UK 2025/26
Your complete take-home pay breakdown using official HMRC 2025/26 rates
Tax & NI Breakdown for £28,000 Salary
| Item | Annual | Monthly |
|---|---|---|
| Gross Salary | £28,000 | £2,333 |
| Personal Allowance | £12,570 | £1,048 |
| Income Tax | -£3,086 | -£257.17 |
| National Insurance | -£1,234 | -£102.83 |
| Take-Home Pay | £23,680 | £1,973 |
Effective tax rate: 15.4% • Marginal rate: 28%
Income Tax Bands Applied
| Band | Taxable Amount | Rate | Tax |
|---|---|---|---|
| Personal Allowance | £12,570 | 0% | £0 |
| Basic Rate | £15,430 | 20% | £3,086 |
| Total Income Tax | £3,086 |
£28,000 Salary - At a Glance (2025/26)
- Annual Take-Home
- £23,680
- Monthly Take-Home
- £1,973
- Weekly Take-Home
- £455.38
- Income Tax
- £3,086
- National Insurance
- £1,234
- Effective Tax Rate
- 15.4%
- Marginal Tax Rate
- 28%
- UK Salary Percentile
- Top 65%
Understanding Your £28,000 Salary After Tax
Earning £28,000 per year in the UK means your take-home pay for 2025/26 is £23,680 annually, or approximately £1,973 each month. Every pound of your taxable income falls within the basic rate band at 20%, plus National Insurance contributions at 8% on earnings between £12,570 and £50,270.
Your Personal Allowance of £12,570 means this amount is completely tax-free each year. The remaining £15,430 is subject to income tax at the basic rate of 20%, resulting in an annual income tax bill of £3,086. Your National Insurance contribution comes to £1,234 per year.
At £28,000, you are near the UK median full-time salary of £34,963, placing you at approximately the 35th percentile of UK earners. This means approximately 65% of UK workers earn more than you.
Your combined effective tax rate is 15.4%, and your marginal rate is 28% (20% tax + 8% NI). This means for each additional pound earned, you take home 72p. If you’re considering salary sacrifice for pension contributions, childcare vouchers, or cycle-to-work schemes, these deductions come from your gross pay and can provide meaningful tax savings at this income level.
Tax-Saving Tips for £28,000 Earners
Pension Contributions - Get Free Money
Every £1 you contribute to your pension only costs you 80p thanks to basic rate tax relief. If your employer offers salary sacrifice for pension, even better - you also save 8% NI, making a £100 gross contribution cost just £72. On £28,000, consider increasing contributions above the minimum 5% to build your retirement pot faster.
Student Loan Considerations
If you have a student loan, repayments are 9% of earnings above the threshold. On Plan 2 (post-2012), you repay £63 per year (£5 monthly) at this salary. On Plan 1 (pre-2012), repayments would be £271 annually. Making voluntary overpayments only makes sense if you will repay the loan in full before it is written off (30 years for Plan 2).
Salary Sacrifice Schemes
Ask your employer about salary sacrifice for cycle-to-work, electric vehicles, or additional pension contributions. These reduce your gross pay before tax, saving you 28% (20% tax + 8% NI). A £1,000 cycle-to-work scheme effectively costs you just £720.
Marriage Allowance
If your partner earns less than £12,570, they can transfer £1,260 of their Personal Allowance to you, saving you £252 in tax each year. You can also backdate claims for up to 4 years.
What If? Scenarios for £28,000
If You Get a £5,000 Pay Rise...
A £5,000 increase would bring your salary to £33,000. After tax and NI, your take-home pay would increase by £3,600 per year (£300 per month). That means you keep 72p of every extra pound - a decent return on your pay rise.
If You Contribute 5% to Pension via Salary Sacrifice...
A 5% pension contribution of £1,400 per year (£117 monthly) into your workplace pension through salary sacrifice would reduce your take-home by just £1,008 per year. The tax and NI savings mean the £1,400 going into your pension only costs you £1,008 - an immediate 28% boost to your pension investment.
Compared to the National Average...
Your salary of £28,000 is £6,963 below the UK median of £34,963. At the median salary, take-home pay is approximately £28,693, a difference of £5,013 in annual take-home pay.
Frequently Asked Questions: £28,000 Salary
How much tax do I pay on £28,000?
On a £28,000 salary in the 2025/26 tax year, you pay £3,086 in income tax and £1,234 in National Insurance, totalling £4,320 in deductions. This leaves you with a take-home pay of £23,680 per year or £1,973 per month.
What is my take-home pay on £28,000?
Your take-home pay on a £28,000 salary is £23,680 per year, £1,973 per month, £455.38 per week, or approximately £91.08 per working day (based on 260 working days).
What is my effective tax rate on £28,000?
Your effective tax rate on £28,000 is 15.4%, which means you keep 84.6p of every pound earned on average. Your marginal tax rate (the rate on your next pound earned) is 28%. The effective rate is lower than the marginal rate because your first £12,570 is tax-free.
How much National Insurance do I pay on £28,000?
On £28,000, your National Insurance contribution is £1,234 per year (£103 per month). NI is charged at 8% on earnings between £12,570 and £50,270, then 2% on earnings above £50,270. Your employer also pays NI on your behalf at 15% above £5,000.
Does £28,000 include student loan repayments?
The take-home figure of £23,680 does not include student loan repayments. If you have a Plan 2 student loan (post-2012), you would repay £63 per year (£5 monthly), reducing your take-home to £23,616. For Plan 1 (pre-2012), repayments would be £271 per year.
How does pension affect my take-home on £28,000?
If you contribute 5% of your salary (£1,400) to a pension via salary sacrifice, your take-home pay reduces from £23,680 to £22,672 per year - a drop of just £1,008 despite £1,400 going into your pension. This is because pension contributions through salary sacrifice save both income tax and National Insurance.
Compare With Similar Salaries
Cost of Living on £28,000 Salary
With a below-average salary of £28,000, bringing home £1,973 per month, you can cover essential living costs in most UK regions, though London and the South East will be significantly tighter. Below is a realistic monthly budget for a single person on this income.
| Monthly Expense | Estimated Cost | % of Take-Home |
|---|---|---|
| Monthly Take-Home Pay | £1,973 | 100% |
| Rent (1-bed average) | £900 | 45.6% |
| Council Tax | £170 | 8.6% |
| Groceries (single person) | £250 | 12.7% |
| Transport | £150 | 7.6% |
| Utilities (gas, electric, water) | £200 | 10.1% |
| Phone & Broadband | £60 | 3.0% |
| Total Essentials | £1,730 | 87.7% |
| Remaining After Essentials | £243 | 12.3% |
On £28,000, rent at £900 consumes 45.6% of your take-home pay. The recommended guideline is to keep housing costs below 30% of net income (£592/month). For couples sharing costs, the financial picture improves considerably, and a family budget with groceries at £550/month and childcare at £1,100/month per child would require dual incomes to be comfortable.
Key Facts About £28,000 Salary
UK Salary Comparison: A salary of £28,000 is £6,963 below the UK median full-time salary of £34,963. This places you at approximately the 35th percentile of UK earners, meaning around 65% of full-time workers earn more than you.
Year-on-Year Tax Changes: For the 2025/26 tax year, income tax thresholds remain frozen at 2022/23 levels as part of the government's fiscal drag policy. This means that even without a pay rise, more of your income is pulled into higher tax bands each year as wages grow with inflation. On £28,000, the frozen Personal Allowance at £12,570 and basic rate threshold continue to increase your effective tax rate compared to previous years.
Regional Purchasing Power: In the North of England, the Midlands, and Wales, this salary stretches further due to lower housing and living costs. In London, where average rents exceed £1,800 per month for a one-bedroom flat, £28,000 would leave very little discretionary income after essentials.
Pension Auto-Enrolment Impact: Under workplace pension auto-enrolment, the minimum employee contribution is 5% (£1,400 per year on this salary), with your employer adding at least 3% (£840). If paid via salary sacrifice, your £1,400 contribution effectively costs you only £1,008 after tax and NI savings at your 28% marginal rate, giving you an immediate 28% boost on your pension investment.
How We Calculate Your Take-Home Pay
This calculation uses official HMRC 2025/26 tax rates and thresholds. We apply the standard tax code 1257L with the Personal Allowance of £12,570, basic rate of 20%, higher rate of 40%, and additional rate of 45%. National Insurance is calculated at 8% between £12,570 and £50,270, and 2% above £50,270. All figures are for England, Wales and Northern Ireland (Scottish rates differ). Our calculations are reviewed monthly and cross-checked against HMRC’s own PAYE calculator.
Last verified: February 2026 | Tax year: 2025/26 (6 April 2025 - 5 April 2026) | Reviewed by: UK Calculator Editorial Team
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Understanding Your UK Take-Home Pay
When you receive your salary in the United Kingdom, several mandatory deductions are taken before the money reaches your bank account. Understanding these deductions helps you plan your finances more effectively and ensures you are paying the correct amount. Your gross salary is reduced by income tax and National Insurance contributions, and may also be affected by student loan repayments and pension contributions. Each of these deductions follows specific rules and thresholds set by HM Revenue and Customs (HMRC) for the relevant tax year.
2025/26 Tax Year: Key Income Tax Rates
The UK tax system uses a progressive structure, meaning different portions of your income are taxed at different rates. For the 2025/26 tax year (6 April 2025 to 5 April 2026), the key thresholds are:
- Personal Allowance: The first £12,570 of your annual income is tax-free. This allowance reduces by £1 for every £2 earned above £100,000, disappearing entirely at £125,140.
- Basic Rate (20%): Applied to taxable income from £12,571 up to £50,270. This is the band most UK earners fall into.
- Higher Rate (40%): Applied to taxable income from £50,271 up to £125,140. Crossing into this band significantly increases your marginal tax rate.
- Additional Rate (45%): Applied to taxable income above £125,140. Only around 1% of UK taxpayers reach this band.
National Insurance Contributions (NICs)
National Insurance is a separate deduction from income tax that funds state benefits including the State Pension and NHS. For employees (Class 1 NICs) in 2025/26:
- 8% rate: Charged on earnings between £12,570 and £50,270 per year.
- 2% rate: Charged on all earnings above £50,270 per year.
- Employer NICs: Your employer also pays 15% on your earnings above £5,000, which does not affect your take-home pay directly but increases the total cost of employing you.
Student Loan Repayment Thresholds
If you have an outstanding student loan, repayments are deducted automatically through PAYE once your income exceeds the relevant threshold. The 2025/26 repayment thresholds are:
- Plan 1 (pre-2012 England/Wales, or Scottish/NI loans): Repay 9% of income above £26,065 per year.
- Plan 2 (post-2012 England/Wales): Repay 9% of income above £28,470 per year.
- Plan 5 (post-2023 England): Repay 9% of income above £25,000 per year.
- Postgraduate Loan: Repay 6% of income above £21,000 per year.
Workplace Pension Auto-Enrolment
Under UK law, employers must automatically enrol eligible workers into a workplace pension scheme. The minimum total contribution is 8% of qualifying earnings (£6,240 to £50,270), split as 5% from the employee and 3% from the employer. If your pension is set up as salary sacrifice, contributions are taken before tax and National Insurance, which can increase your overall savings. Many employers offer to match higher contributions, so it is worth checking whether you can increase your pension savings tax-efficiently.
Scottish Income Tax Rates
If you are a Scottish taxpayer, different income tax rates and bands apply. Scotland has its own starter, basic, intermediate, higher, advanced, and top rate bands, which generally result in slightly different take-home pay compared to the rest of the UK. Your tax code will begin with an “S” if Scottish rates apply to you. Use our salary calculator and select the Scottish tax option for an accurate breakdown.
For a fully personalised calculation including pension contributions, student loans, overtime, bonuses, and Scottish tax rates, use our main UK salary calculator.
Common Questions About UK Take-Home Pay
Why is my take-home pay different from what I expected?
Your take-home pay can differ from expectations due to several factors: an incorrect tax code, emergency tax being applied, student loan deductions, pension contributions, or salary sacrifice arrangements. Always check your payslip carefully and verify your tax code through your HMRC Personal Tax Account. If you have recently changed jobs or have multiple income sources, your tax code may need updating.
Do I need to file a self-assessment tax return?
Most PAYE employees do not need to file a self-assessment return. However, you must file one if you are self-employed, earn over £150,000, have untaxed income exceeding £2,500, receive income from property, or need to claim certain tax reliefs. If you earn between £100,000 and £125,140 and want to claim your full Personal Allowance through pension contributions, self-assessment may also be required. Check the GOV.UK self-assessment checker to confirm.
How can I reduce my tax bill legally?
There are several legitimate ways to reduce your tax liability: increase your pension contributions (especially via salary sacrifice), claim Marriage Allowance if eligible, use your full ISA allowance (£20,000 per year) for tax-free savings and investments, claim work-from-home tax relief if applicable, and make charitable donations through Gift Aid which extends your basic rate band. Higher earners can also benefit from carrying pension annual allowance forward from previous years.