How £18,000 is taxed
The first £12,570 is your tax-free Personal Allowance, leaving £5,430 of taxable income. At £18,000 your top slice of pay falls in the basic rate, so each extra £100 of salary is worth about £72 after Income Tax and National Insurance.
- £1,086.00 at 20% on £5,430 (basic rate)
- £433.92 National Insurance: 8% on monthly earnings between £1,048 and £4,189
With a student loan, a pension or in Scotland
| £18,000 salary | Take-home / year | Per month |
|---|---|---|
| Standard (England, Wales, NI) | £16,480 | £1,373 |
| Living in Scotland | £16,520 | £1,377 |
| With a Plan 2 student loan | £16,480 | £1,373 |
| With a Plan 5 student loan | £16,480 | £1,373 |
| Paying 5% into a pension | £15,760 | £1,313 |
A Scottish taxpayer on £18,000 takes home £40 more a year, thanks to the 19% starter rate. A Plan 2 student loan takes nothing at this salary, because it is below the £29,385 threshold. A 5% relief-at-source pension puts £900 into your pot for £720 of take-home pay.
Compared with nearby salaries
£17,000 takes home £15,760 (£1,313 a month). £19,000 takes home £17,200, so the extra £1,000 of salary is worth £720 after tax. You are £32,270 below the higher-rate threshold (40%).
What £18,000 could borrow for a mortgage
At a typical 4.5× income multiple a single applicant on £18,000 might borrow about £81,000. Over 25 years at the average 5-year fixed rate of 4.98%, that costs £473 a month — 34.4% of take-home pay. Lenders also check affordability, so debts and childcare can reduce it. See the mortgage affordability calculator for your own figures.
£18,000 as an hourly rate
For a 37.5-hour week over 52 weeks, £18,000 is £9.23 an hour before tax and £8.45 after tax — below the £12.71 National Living Wage for full-time hours. Compare with an hourly job in the hourly to salary calculator.
Figures assume a normal 2026/27 tax year, tax code 1257L, monthly pay and no other income or benefits. Use the take-home pay calculator to add your tax code, pension, bonus or student loan.