Annual Report

What Britain Really Earns
(and Keeps)

We calculated the actual take home pay for every UK salary, region, profession, and age group. Here's what we found.

Published 14 February 2026 · Based on HMRC 2025/26 rates & ONS earnings data

UK Median Salary
£34,963
50th percentile
Take Home (Median)
£2,391/mo
after tax & NI
Top 10% Threshold
£60,000
earn more than 90%
Top 1% Threshold
£130,000
earn more than 99%

Key Finding: The Average Worker Loses 24% to Tax

On the UK median salary of £34,963, a worker takes home £28,693/year — that's £2,391/month. The government takes £6,270 in income tax and National Insurance, an effective rate of 18%.

But the mean average salary is £38,600 — significantly higher than the median. This gap reveals how top earners skew the average upward. If someone tells you "the average salary is £38,600," that's technically true but misleading. Half of all workers earn less than £34,963.

The number that matters most

After tax, the median UK worker has £2,391 per month to cover rent, bills, food, transport, and everything else. In London, average rent alone is £2,200 — eating 88% of the national median take home.

The UK Tax Burden by Income

The UK's progressive tax system means effective tax rates vary enormously. Someone on £20,000 loses just 13% to tax and NI. Someone on £100,000 loses 33%. And those caught in the £100,000-£125,140 trap face a 60% marginal rate.

Gross SalaryIncome TaxNational InsuranceTake HomeEffective Rate
£15,000£486£194£14,3204.5%
£20,000£1,486£594£17,92010.4%
£25,000£2,486£994£21,52013.9%
£30,000£3,486£1,394£25,12016.3%
£35,000£4,486£1,794£28,72017.9%
£40,000£5,486£2,194£32,32019.2%
£50,000£7,486£2,994£39,52021.0%
£60,000£11,432£3,211£45,35724.4%
£80,000£19,432£3,611£56,95728.8%
£100,000£27,432£4,011£68,55731.4%
£125,000£43,065£4,511£77,42438.1%
£150,000£54,346£5,011£90,64339.6%
£200,000£76,846£6,011£117,14341.4%

The £100,000 Tax Trap

Earning between £100,000 and £125,140 triggers the personal allowance taper — effectively a 60% marginal tax rate. Someone earning £125,140 pays the same effective rate as someone on £150,000+. This is the single most punitive section of the UK tax code, and it catches more people every year as salaries rise but the threshold stays frozen.

Regional Salaries: The London Question

London salaries are 27% higher than the UK average. But after tax and rent, the picture flips entirely.

RegionAvg SalaryTake Home/MoAvg Rent (1bed)After Rent
London £44,370 £2,956 £2,200 £756
South East £36,800 £2,501 £1,300 £1,201
East of England £35,200 £2,405 £1,150 £1,255
Scotland £35,000 £2,393 £1,000 £1,393
South West £33,500 £2,303 £1,100 £1,203
North West £33,200 £2,285 £950 £1,335
East Midlands £32,500 £2,243 £850 £1,393
West Midlands £32,000 £2,213 £900 £1,313
Yorkshire £31,800 £2,201 £850 £1,351
Wales £31,200 £2,165 £800 £1,365
North East £30,800 £2,141 £750 £1,391
Northern Ireland £30,500 £2,123 £700 £1,423

The real winner: the North West

Despite earning £11,000 less than London, North West workers are left with more disposable income after rent than Londoners in several scenarios. When you factor in other cost-of-living differences, the gap widens further. The data suggests that for most people, relocating from London to Manchester or Liverpool would improve their financial position.

Salary by Profession: Who Earns What

We ranked 20 common UK professions by gross salary and calculated what each actually takes home after tax.

#ProfessionAvg SalaryTake Home/MoEffective Tax
1 Chief Executive £120,000 £6,325 36.8%
2 IT Director £95,000 £5,471 30.9%
3 Medical Consultant £93,000 £5,375 30.6%
4 Airline Pilot £92,000 £5,326 30.5%
5 Financial Manager £78,000 £4,650 28.5%
6 Solicitor (Partner) £75,000 £4,505 27.9%
7 Software Architect £72,000 £4,360 27.3%
8 Dentist £70,000 £4,263 26.9%
9 Actuary £68,000 £4,166 26.5%
10 GP £65,000 £4,021 25.8%
11 Pharmacist £48,000 £3,173 20.7%
12 Teacher (UPS3) £43,607 £2,910 19.9%
13 Civil Engineer £42,000 £2,813 19.6%
14 Electrician £38,000 £2,573 18.7%
15 Nurse (Band 6) £37,890 £2,567 18.7%
16 Police Constable £36,775 £2,500 18.4%
17 Paramedic £36,000 £2,453 18.2%
18 Social Worker £35,000 £2,393 17.9%
19 Retail Manager £28,000 £1,973 15.4%
20 Teaching Assistant £22,000 £1,613 12.0%

The Age-Earnings Curve

UK salaries peak between 40-49, then decline. The average 22-year-old earns £28,000; the average 45-year-old earns £38,000 — a 36% premium for experience.

Age GroupAverage SalaryTake Home/Month
18-21£18,000£1,373
22-29£28,000£1,973
30-39£35,000£2,393
40-49£38,000£2,573
50-59£36,000£2,453
60+£30,000£2,093

The Gender Pay Gap in Take Home Terms

The median salary for men is approximately £38,000; for women it's £31,000. After tax, that's a gap of approximately £430/month in take home pay. The gap narrows slightly in after-tax terms because the tax system is progressive — the higher earner loses a larger percentage. But it remains substantial.

What Would Make the Biggest Difference?

We modelled three scenarios:

Scenario 1: Raise the personal allowance to £15,000

Every worker earning over £15,000 would gain £486/year in take home. Cost to treasury: approximately £14 billion.

Scenario 2: Abolish the £100k personal allowance taper

Would eliminate the 60% marginal rate trap. Affects approximately 1.2 million workers. Cost to treasury: approximately £2 billion.

Scenario 3: Cut basic rate to 18%

Every basic rate taxpayer would save £754/year. Cost to treasury: approximately £20 billion.

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Methodology & Sources

Salary data is sourced from the ONS Annual Survey of Hours and Earnings (ASHE), supplemented with sector-specific data from NHS Employers, HESA, and professional body surveys. Tax calculations use HMRC 2025/26 rates and thresholds. Regional rent data is based on ONS Private Rental Market Statistics. All take home calculations include income tax and employee National Insurance contributions but exclude pension contributions and student loan repayments, which vary by individual.

This report is updated annually. Data was compiled in February 2026.

Data from UK Take Home Pay. You are welcome to cite, share, and reference this report. Please link back to uktakehomepay.co.uk/uk-salary-report-2026.html when citing.