£20,000 After Tax (2026/27)

A £20,000 salary is £1,666.67 a month before deductions. After income tax of £123.83 and National Insurance of £49.53 a month in 2026/27, £1,493.30 a month is left, with no pension or student loan taken. A pension of 5% of qualifying earnings (£6,240 to £50,270), relief at source, on £20,000 brings the monthly figure to £1,447.43, and in Scotland, with no pension, the same pay leaves £1,496.61 a month.

On £20,000 in 2026/27 the income tax is £1,486.00 a year, or £123.83 a month. The first £12,570 is covered by the personal allowance, and the remaining £7,430 is taxed at 20%. National Insurance adds £594.40, so tax and National Insurance on £20,000 come to £2,080.40, an effective rate of 10.40%.

Over 52 weeks of 37.5 hours, a £20,000 salary works out at £10.26 an hour before tax. After income tax and National Insurance for 2026/27, £9.19 an hour is left, or £68.92 for each of 5 working days a week. A week's pay on £20,000 is £384.62 before deductions and £344.61 after them.

With the Scottish income tax bands for 2026/27, a £20,000 salary leaves £17,959.27 a year, or £1,496.61 a month, after £1,446.33 of income tax. The top slice of £20,000 falls in the Scottish basic rate band at 20%. National Insurance of £594.40 is the same across the UK, because Scotland sets its own income tax but not National Insurance. That is £39.67 more than in England, Wales or Northern Ireland, where £20,000 leaves £17,919.60.

Outside Scotland nothing changes: on £20,000 the take home is £17,919.60 in both 2025/26 and 2026/27, because the personal allowance, the tax bands and the National Insurance thresholds for England, Wales and Northern Ireland are the same in both years. In Scotland the take home on £20,000 is £17,959.27, which is £11.40 more than the £17,947.87 the 2025/26 rates gave because the Scottish starter rate and basic rate bands are wider in 2026/27.