£40,000 Salary – Take-Home Pay After Tax (UK)
If you earn £40,000 per year in the UK, your take-home pay will be around £31,000–£32,000 per year, depending on your pension contributions and student loan situation. Here's the breakdown for 2025/26.
Annual Take-Home Pay
For a £40,000 annual salary with standard deductions (5% pension, no student loan):
- Gross Salary: £40,000
- Pension (5%): £2,000
- Income Tax: £5,486
- National Insurance: £2,194
- Take-Home Pay: £30,320 per year
This means you keep about 76% of your gross salary as take-home pay.
Monthly Take-Home Pay
Your monthly take-home pay from a £40,000 salary is approximately:
- Monthly Gross: £3,333
- Monthly Take-Home: £2,527
This is the amount that hits your bank account each month after all deductions.
Weekly Take-Home Pay
Your weekly take-home pay from a £40,000 salary is approximately:
- Weekly Gross: £769
- Weekly Take-Home: £583
Tax & NI Breakdown
For a £40,000 salary, you're in the basic rate tax band (20%). Here's how your deductions break down:
- Taxable Income: £27,430 (after Personal Allowance of £12,570)
- Income Tax (20%): £5,486
- National Insurance (8%): £2,194 on earnings between £12,570 and £38,000
Learn more about UK tax bands and how they work.
What Changes This Number?
Pension Contributions
If you contribute more to your pension, your take-home pay decreases, but you get tax relief. For example:
- 3% pension: Take-home pay increases to around £30,800
- 7% pension: Take-home pay decreases to around £29,800
Use our pension calculator to see the impact of different contribution levels.
Student Loan
If you have a student loan, your take-home pay will be lower:
- Plan 1: Additional deduction of around £1,618 per year (take-home: £28,702)
- Plan 2: Additional deduction of around £1,143 per year (take-home: £29,177)
Learn more about student loan repayments.