Is £16,000 a good salary in the UK?

The full-time median salary in the UK is around £37,430 (ONS ASHE 2024, full-time employees). £16,000 is roughly 57% below that figure.

How much is £16,000 per hour?

Around £8.21 per hour gross, or £7.71 per hour after tax, assuming a 37.5-hour week.

How much tax do I pay on £16,000?

On £16,000 in the UK, you pay approximately £686 in income tax and £274 in National Insurance.

£16,000 After Tax in the UK (2026/27)

If you earn £16,000 per year in the UK, your take-home pay is £15,040 per year — £1,253 per month, £289 per week, or £7.71 per hour after Income Tax and NI.

Net pay per month

£1,253

94.0% of gross — £15,040 per year

Income Tax

£686

4.3%

National Insurance

£274

1.7%

Effective rate

6.0%

of gross

Marginal rate

20%

on next £1

£16,000 after tax by pay period

Period	Gross	Tax	NI	Take-home
Yearly	£16,000	£686	£274	£15,040
Monthly	£1,333	£57	£23	£1,253
Weekly	£308	£13	£5	£289
Daily (260 days)	£62	£3	£1	£58
Hourly (37.5h week)	£8.21	£0.35	£0.14	£7.71

Daily assumes 260 working days. Hourly assumes a 37.5-hour week.

How your tax is calculated

£12,570 is tax-free (personal allowance). £12,571–£50,270 is taxed at the 20% basic rate. National Insurance is 8% between £12,570 and £50,270, then 2% above. Your marginal rate is 20% — every additional £1 you earn keeps roughly £0.72 after tax and NI.

What if…

£16,500 instead? Your take-home rises by roughly £60/month — see £16,500 after tax.
With a 5% pension contribution, your monthly take-home would be £1,200 but you'd save around £160 in income tax over the year.
10 hours of overtime a month at time-and-a-half would add about £98 to your monthly take-home.

Frequently asked questions

Is £16,000 a good salary in the UK?: The full-time median salary in the UK is around £37,430 (ONS ASHE 2024, full-time employees). £16,000 is roughly 57% below that figure.
How much is £16,000 per hour?: Assuming a 37.5-hour week over 260 working days, £16,000 a year is around £8.21 per hour gross, or £7.71 per hour after tax.
How much tax do I pay on £16,000?: On £16,000 a year in the UK, you would pay approximately £686 in income tax and £274 in National Insurance — an effective rate of 6.0%.