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In the UK, generally about 11% of gross pay for most people. National Insurance adds about 11% on top of that, though, so about 22% in total, on average.
Exactly how much tax you pay depends on your personal allowance (the amount you can earn before paying tax). Everyone gets to earn at least £5305 each tax year (roughly 5 April-4 April) tax free. If you're over 65 the tax free amount goes up (by a complicated formula), and goes up again for the over 75.
Blind or elderly married get to earn a bit more tax free.
The first £2150 that you earn (above the £5305) is only taxed at 10%. The next £30k or so is taxed at 22%. Additional income gets taxed at 40%.
National Insurance is another type of tax on our wages, and is calculated differently. You pay 11% of your wages above a weekly salary of £97 (£5044).
The tax free allowances and NI contributions change slightly from year to year.
Example worked out for a low income worker:
Suppose gross pay = £200 weekly.
Annual gross = 200*52=£10,400.
Annual NI contribs =52*(200-97)*.11 =£589.16
10,400 - 5035 = £5364
£2150 * .1 = £215 (tax at 10% rate)
5365 - 2150 = 3215, * .22 = £707.3 (tax at 22%) rate.
Annual wage = £10,400 - £589.16 (NI) - £215 (10% tax) - £707.3 (22% tax) = £8888.54.
Your employer works that out for you weekly, so your net weekly take-home is (8888.54/52=£170.93). Or just under 15% taken off by tax + NI.
Exactly how much tax you pay depends on your personal allowance (the amount you can earn before paying tax). Everyone gets to earn at least £5305 each tax year (roughly 5 April-4 April) tax free. If you're over 65 the tax free amount goes up (by a complicated formula), and goes up again for the over 75.
Blind or elderly married get to earn a bit more tax free.
The first £2150 that you earn (above the £5305) is only taxed at 10%. The next £30k or so is taxed at 22%. Additional income gets taxed at 40%.
National Insurance is another type of tax on our wages, and is calculated differently. You pay 11% of your wages above a weekly salary of £97 (£5044).
The tax free allowances and NI contributions change slightly from year to year.
Example worked out for a low income worker:
Suppose gross pay = £200 weekly.
Annual gross = 200*52=£10,400.
Annual NI contribs =52*(200-97)*.11 =£589.16
10,400 - 5035 = £5364
£2150 * .1 = £215 (tax at 10% rate)
5365 - 2150 = 3215, * .22 = £707.3 (tax at 22%) rate.
Annual wage = £10,400 - £589.16 (NI) - £215 (10% tax) - £707.3 (22% tax) = £8888.54.
Your employer works that out for you weekly, so your net weekly take-home is (8888.54/52=£170.93). Or just under 15% taken off by tax + NI.
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