United Kingdom Tax year 2026/27
Rules checked against GOV.UK · updated 18 September 2026MethodologyReport a mistake

£16 an hour after tax 2026/27

£16 an hour over a 37.5-hour week is £31,200 a year, which takes home £25,984.08 a year, or £2,165.34 a month, in England, Wales and Northern Ireland. You pay £3,726.00 income tax and £1,489.92 National Insurance.You take home £2,165.34 a month at £16 an hour over a 37.5-hour week.

Adjust for your situation
ScotlandStudent loanPensionTax code
Open in the calculator
Year£25,984.08
Month£2,165.34
4 weeks£1,998.78
Week£499.69
Day£99.94
Hour£13.33
Tax code 1257L · no pension · no student loan · 37.5 hours a week · 2026/27 Same as 2025/26: the thresholds are frozen
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Where £16 an hour goes

Take-home 83.3%Income tax 11.9%National Insurance 4.8%
YearMonthWeek
Gross pay£31,200.00£2,600.00£600.00
Income tax−£3,726.00−£310.50−£71.65
National Insurance−£1,489.92−£124.16−£28.65
Take-home pay£25,984.08£2,165.34£499.69
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What a pay rise is worth at £16 an hourA pay rise at £16 an hour

Marginal rate28%Tax and NI on your next £1
A £1,000 rise adds£1,000 rise adds£719.96£60.00 a month
A 5% rise (£1,560) adds£1,123.20£93.60 a month
You’re £19,070 below the higher-rate threshold. The next £19,068 you earn keeps 72p in every pound — National Insurance changes first, at £4,189 a month. Pay rise calculator
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£16 an hour after tax in ScotlandIn Scotland

England, Wales, NI£25,984.08£2,165.34 a month
ScotlandTake-home a month£26,007.01£2,167.25£2,167.25 a month£22.93 more a year
Difference£22.93a year more in Scotland

At £31,200 the Scottish 21% intermediate band on pay above £29,526 costs you more, but the 19% starter band saves more than it costs, so you pay £22.93 less income tax overall.

With a student loan

PlanRepaid a yearTake-home a month
Plan 1£387.00£2,133.09
Plan 2£163.00£2,151.76
Plan 4£0.00£2,165.34
Plan 5£558.00£2,118.84
Postgraduate Loan£612.00£2,114.34

Paying into a pension by salary sacrifice

You sacrificeInto your pensionCost to take-homeTake-home a month
3%£936.00£673.92£2,109.18
5%£1,560.00£1,123.20£2,071.74
8%£2,496.00£1,797.12£2,015.58

Every £1 you sacrifice costs you 72p in take-home pay, because you save 20% tax and 8% NI.

Compared with othersBelow the UK median

The median full-time salary was £39,039 in April 2025 (ONS Annual Survey of Hours and Earnings).

Cost to your employer£35,130.00 a year

Your salary plus £3,930.00 employer NI at 15% above £5,000, before any employer pension.

What £16 an hour took home in earlier years

2010/11£23,451.65
2015/16£24,303.20
2020/21£24,856.00
2026/27£25,984.08

The same £16 an hour now takes home more a year than in 2010/11. None of these figures is adjusted for inflation.

The sum, step by step

Worked calculationrules v2026.10 · yearly tax, monthly National Insurance
Gross salary£31,200.00
Personal Allowance (tax code 1257L)−£12,570.00Tax-free
Taxable pay£18,630.00
Basic rate 20% on £18,630.00£3,726.00Income tax
National Insurance 8% on £1,552.00 a month, £124.16 × 12£1,489.92Above £1,048
Take-home pay£25,984.08

Questions about £16 an hour

How much is £16 an hour after tax a month?

£2,165.34 a month in England, Wales and Northern Ireland, or £2,167.25 in Scotland, over a 37.5-hour week with tax code 1257L and no student loan or pension.

What is £16 an hour a year?

£31,200 a year before tax over a 37.5-hour week for every week of the year, which takes home £25,984.08 after income tax and National Insurance. Working fewer hours means a smaller yearly figure and, below the thresholds, less tax with it.

What is £16 an hour a week after tax?

A 37.5-hour week at £16 an hour is £600.00 before tax and £499.69 after income tax and National Insurance, spread evenly across the year. £13.33 of every hour reaches you.

Is £16 an hour a good wage in the UK?

That depends on where you live and what you spend, which is yours to judge. What we can tell you is that £16 an hour over a 37.5-hour week comes to £31,200 a year, which is below the UK median full-time salary of £39,039 for April 2025, and leaves about £2,165 a month in England, Wales and Northern Ireland — £2,165.34 to the penny.

Rules v2026.10 · checked against GOV.UK on 18 September 2026Two independent checks on every rate · 83 hand-verified cases, all passing, beside 19,925 generated · How we calculate · Changelog
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