How £20,000 is taxed
The first £12,570 is your tax-free Personal Allowance, leaving £7,430 of taxable income. At £20,000 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.
- £1,486.00 at 20% on £7,430 (basic rate)
- £593.88 National Insurance: 8% on monthly earnings between £1,048 and £4,189
With a student loan, a pension or in Scotland
| £20,000 salary | Take-home / year | Per month |
|---|---|---|
| Standard (England, Wales, NI) | £17,920 | £1,493 |
| Living in Scotland | £17,960 | £1,497 |
| With a Plan 2 student loan | £17,920 | £1,493 |
| With a Plan 5 student loan | £17,920 | £1,493 |
| Paying 5% into a pension | £17,120 | £1,427 |
A Scottish taxpayer on £20,000 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 £1,000 into your pot for £800 of take-home pay.
Compared with nearby salaries
£19,000 takes home £17,200 (£1,433 a month). £21,000 takes home £18,640, so the extra £1,000 of salary is worth £720 after tax. You are £30,270 below the higher-rate threshold (40%).
What £20,000 could borrow for a mortgage
At a typical 4.5× income multiple a single applicant on £20,000 might borrow about £90,000. Over 25 years at the average 5-year fixed rate of 4.98%, that costs £525 a month — 35.2% of take-home pay. Lenders also check affordability, so debts and childcare can reduce it. See the mortgage affordability calculator for your own figures.
£20,000 as an hourly rate
For a 37.5-hour week over 52 weeks, £20,000 is £10.26 an hour before tax and £9.19 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.