How £21,000 is taxed
The first £12,570 is your tax-free Personal Allowance, leaving £8,430 of taxable income. At £21,000 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.
- £1,686.00 at 20% on £8,430 (basic rate)
- £673.92 National Insurance: 8% on monthly earnings between £1,048 and £4,189
With a student loan, a pension or in Scotland
| £21,000 salary | Take-home / year | Per month |
|---|---|---|
| Standard (England, Wales, NI) | £18,640 | £1,553 |
| Living in Scotland | £18,680 | £1,557 |
| With a Plan 2 student loan | £18,640 | £1,553 |
| With a Plan 5 student loan | £18,640 | £1,553 |
| Paying 5% into a pension | £17,800 | £1,483 |
A Scottish taxpayer on £21,000 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 £1,050 into your pot for £840 of take-home pay.
Compared with nearby salaries
£20,000 takes home £17,920 (£1,493 a month). £22,000 takes home £19,360, so the extra £1,000 of salary is worth £720 after tax. You are £29,270 below the higher-rate threshold (40%).
What £21,000 could borrow for a mortgage
At a typical 4.5× income multiple a single applicant on £21,000 might borrow about £94,500. Over 25 years at the average 5-year fixed rate of 4.98%, that costs £551 a month — 35.5% of take-home pay. Lenders also check affordability, so debts and childcare can reduce it. See the mortgage affordability calculator for your own figures.
£21,000 as an hourly rate
For a 37.5-hour week over 52 weeks, £21,000 is £10.77 an hour before tax and £9.56 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.