Minimum Wage After Tax UK (2026/27)
National Living Wage take-home from an hourly rate
Minimum wage and National Living Wage (NLW) are hourly legal floors. Take-home still depends on annualised earnings under PAYE. This page seeds the ages 21+ NLW rate of £12.71/hr for 2026/27 at 40 hours/week (about £26,437 gross) so you can see net pay after income tax and National Insurance, then change hours or rate.
Salary Sankey - 2026/27
Yearly breakdown of a £26,437.00 gross annual salary in 2026/27
Salary Breakdown Table - 2026/27
| Metric | Yearly | Monthly | Weekly | Daily |
|---|---|---|---|---|
Gross income | £26,437.00 | £2,203.08 | £508.40 | £101.68 |
| Personal allowance | £12,570.00 | £1,047.50 | £241.73 | £48.35 |
| Taxable income | £13,867.00 | £1,155.58 | £266.67 | £53.33 |
Deductions | £3,882.76 | £323.56 | £74.67 | £14.93 |
Income tax | £2,773.40 | £231.12 | £53.33 | £10.67 |
| Basic rate | £2,773.40 | £231.12 | £53.33 | £10.67 |
| National Insurance | £1,109.36 | £92.45 | £21.33 | £4.27 |
| Net take-home | £22,554.24 | £1,879.52 | £433.74 | £86.75 |
Minimum wage vs National Living Wage
The UK uses age-banded statutory rates. The National Living Wage applies to workers aged 21 and over; younger workers and apprentices have different National Minimum Wage rates. Always check the current legal rates on GOV.UK National Minimum Wage rates — employers must pay at least the correct band for the worker’s age.
What does NLW look like after tax?
At £12.71 × 40 hours × 52 weeks ≈ £26,437 gross, the calculator’s default 2026/27 estimate (no pension, no Student Loan) is about £22,554 a year / £1,880 a month, with an effective tax rate near 14.69%. Part-time hours, overtime, and pension enrolment all change that figure — edit the form rather than multiplying hourly net by habit.
How hourly pay is taxed
PAYE does not tax “per hour” as a separate system. Your employer annualises expected earnings, then applies income tax bands and National Insurance. Irregular hours can make monthly net bounce even when the hourly rate is fixed. Use the hourly wage calculator when comparing offers quoted only as £/hr.
FAQ
How much is minimum wage after tax UK?
On the ages 21+ NLW example above (£12.71/hr × 40 hrs for 2026/27), take-home is about £22,554 a year (~£1,880 / month) with no pension or Student Loan. The method is: convert rate × hours × weeks to annual gross, then apply PAYE — change hours in the calculator if you work part-time.
Does minimum wage mean I pay no tax?
No for most full-time NLW earners. £26,437 gross sits above the personal allowance, so income tax and NI still apply — see income tax rates and the breakdown in the calculator for your hours.
How do I compare other hourly rates?
Use the hourly wage calculator hub and its rate ladder, or switch to annual mode on the main salary calculator if the role is salaried.