After Tax Calculator
Where Your Money Goes
Full Breakdown: £23,000 Salary
| Deduction | Annual | Monthly | Weekly |
|---|---|---|---|
| Gross Salary | £23,000.00 | £1,916.67 | £442.31 |
| Income Tax | £2,086.00 | £173.83 | £40.12 |
| National Insurance | £834.40 | £69.53 | £16.05 |
| Take-Home Pay | £20,079.60 | £1,673.30 | £386.15 |
Understanding Your £23,000 Salary After Tax
If you earn £23,000 per year in the UK, your employer will deduct £2,086.00 in income tax and £834.40 in National Insurance contributions during the 2025/26 tax year. This leaves you with a net take-home pay of £20,079.60 annually. Use our after tax calculator to adjust for pension and student loan deductions.
Commuting Costs vs Take-Home Pay
Commuting is effectively an invisible salary reduction. An annual train season ticket averaging £2,800 consumes 14% of your £20,080 net pay — and crucially, this comes from already-taxed income. Car commuting (fuel, insurance, parking, maintenance) typically costs around £4,500/year (22% of net pay). A 10-minute remote working negotiation could save you more than a 5% pay rise. When evaluating a £23,000 offer, subtract realistic commuting costs first to see your true disposable income — it can be surprisingly different between two identically-paid roles.
How Your £23,000 Is Taxed Band-by-Band
After your £12,570 Personal Allowance, the remaining £10,430 falls within the Basic Rate band at 20%. This means you pay £2,086 in income tax — one of the most straightforward tax positions in the UK system. In total, your combined income tax of £2,086 and National Insurance of £834 produce an effective deduction rate of 12.7%.
Mortgage Affordability on £23,000
UK mortgage lenders typically offer 4.5 times your gross salary as a maximum loan. On £23,000, that gives you borrowing power of approximately £103,500. With a 10% deposit of £10,350, you could purchase a property worth up to £113,850. At current interest rates (around 5.5%), monthly repayments on this mortgage would be roughly £474 — representing 28% of your £1,673 monthly take-home pay. Financial advisers generally recommend keeping mortgage payments below 28-33% of net income.
Rent Affordability Across the UK
Financial guidelines suggest spending no more than 30% of your take-home pay on rent. On £1,673 per month, your recommended maximum rent is £502. 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.
Budgeting £1,673 Per Month
The 50/30/20 framework applied to your £1,673 monthly take-home suggests: £837 for essential needs (housing, utilities, groceries, transport, insurance), £502 for discretionary spending (dining out, entertainment, hobbies, subscriptions), and £335 for savings and debt repayment. If £837 covers your fixed costs comfortably, you're in a strong financial position. If it doesn't, consider whether relocating, downsizing, or renegotiating your largest expenses could realign your budget.
For comparison: someone earning £50,000 per year takes home £39,520.
Monthly & Weekly Take-Home
Your £23,000 salary breaks down to £1,673.30 per month, £386.15 per week, or £77.23 per working day. If you work a standard 37.5-hour week, that's approximately £9.65 per hour after tax.
Frequently Asked Questions
Compare Similar Salaries
See how your take-home pay compares to other salary levels:
Popular After Tax Calculations
These are the most searched salary calculations in the UK — see the full breakdown for each:
More Salary Breakdowns
Explore detailed after tax calculations for other UK salaries:
Specialist Calculators
Need a calculator tailored to your profession or employment type?