After Tax Calculator
Where Your Money Goes
Full Breakdown: £21,000 Salary
| Deduction | Annual | Monthly | Weekly |
|---|---|---|---|
| Gross Salary | £21,000.00 | £1,750.00 | £403.85 |
| Income Tax | £1,686.00 | £140.50 | £32.42 |
| National Insurance | £674.40 | £56.20 | £12.97 |
| Take-Home Pay | £18,639.60 | £1,553.30 | £358.45 |
Understanding Your £21,000 Salary After Tax
If you earn £21,000 per year in the UK, your employer will deduct £1,686.00 in income tax and £674.40 in National Insurance contributions during the 2025/26 tax year. This leaves you with a net take-home pay of £18,639.60 annually. Use our after tax calculator to adjust for pension and student loan deductions.
Understanding Your Tax Code
On a £21,000 salary, your PAYE tax code is likely 1257L. The "1257" represents your £12,570 Personal Allowance divided by 10, and "L" means you qualify for the standard allowance. If your tax code on your payslip doesn't match what you expect, contact HMRC — an incorrect code could mean you're over or underpaying tax throughout the year. Common causes of incorrect codes include untaxed benefits, estimated earnings from a second job, or outdated Marriage Allowance claims.
How Your £21,000 Is Taxed Band-by-Band
After your £12,570 Personal Allowance, the remaining £8,430 falls within the Basic Rate band at 20%. This means you pay £1,686 in income tax — one of the most straightforward tax positions in the UK system. In total, your combined income tax of £1,686 and National Insurance of £674 produce an effective deduction rate of 11.24%.
Your Daily Spending Power
On a £21,000 salary, your take-home works out to £72 per working day and approximately £9 per hour (based on a standard 37.5-hour working week across 260 working days). To put this in everyday terms, your daily net earnings equate to roughly 16 cups of coffee or 9 shop-bought lunches. Understanding your true hourly rate after tax helps when evaluating overtime offers, freelance opportunities, or deciding whether a side project is financially worthwhile.
Rent Affordability Across the UK
Financial guidelines suggest spending no more than 30% of your take-home pay on rent. On £1,553 per month, your recommended maximum rent is £466. This may be challenging in most UK cities. However, average rents in London (£1,750) and South East (£1,200) and Manchester (£950) exceed this threshold. Shared accommodation, commuting from suburbs, or employer housing support can bridge the gap in high-cost areas.
National Insurance on £21,000
Your NI bill of £674 breaks down into two parts: £674 at 8% on earnings between £12,570 and £50,270. Unlike income tax, NI has no personal allowance — it applies from the first pound above the threshold. NI contributions build your entitlement to the State Pension (currently £221.20/week at the full new State Pension rate), Maternity Allowance, and bereavement benefits. You need 35 qualifying years for the full State Pension.
For comparison: someone earning £50,000 per year takes home £39,520.
Monthly & Weekly Take-Home
Your £21,000 salary breaks down to £1,553.30 per month, £358.45 per week, or £71.69 per working day. If you work a standard 37.5-hour week, that's approximately £8.96 per hour after tax.
Frequently Asked Questions
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