£18,000 vs £23,000 After Tax 2025-26
Side-by-side UK take-home pay comparison · Income Tax + National Insurance
You keep £3,600 more per year
Earning £23,000 instead of £18,000 gives you £300 more per month (£69/week). Of the £5,000 gross difference, you keep 72% after tax and NI.
£18,000 — Income Tax bands
| Band | Tax |
|---|---|
| Personal Allowance | — |
| Basic Rate (20%) | £1,086 |
| Total Income Tax | £1,086 |
£23,000 — Income Tax bands
| Band | Tax |
|---|---|
| Personal Allowance | — |
| Basic Rate (20%) | £2,086 |
| Total Income Tax | £2,086 |
Full breakdown — £18,000 vs £23,000
| £18,000 | £23,000 | Difference | |
|---|---|---|---|
| Gross salary | £18,000 | £23,000 | +£5,000 |
| Income Tax | £1,086 | £2,086 | +£1,000 |
| National Insurance | £434 | £834 | +£400 |
| Total deductions | £1,520 | £2,920 | +£1,400 |
| Net pay (annual) | £16,480 | £20,080 | +£3,600 |
| Net monthly | £1,373 | £1,673 | +£300 |
| Net weekly | £317 | £386 | +£69 |
| Net daily | £63 | £77 | +£14 |
| Effective tax rate | 8.44% | 12.7% | |
| Marginal tax rate | 28% | 28% |
£18,000 vs £23,000 after tax — what you actually keep
On a £18,000 salary, you take home £16,480 per year (£1,373/month). On £23,000, you take home £20,080 per year (£1,673/month). The £5,000 gross difference translates to £3,600 extra take-home — you keep 72% of the raise.
Income Tax on £18,000 is £1,086, rising to £2,086 on £23,000. National Insurance increases from £434 to £834. Together these deductions mean HMRC takes £1,400 of the £5,000 difference.
Why the effective rate changes
At £18,000 the effective tax rate is 8.44%, while at £23,000 it rises to 12.7%. This is because additional earnings are taxed at the marginal rate (28% on £23,000), which is higher than the blended average. The more you earn, the greater the proportion taken in tax and NI.
Frequently asked questions
How much more do I take home on £23,000 vs £18,000?
On £23,000 you take home £20,080/year (£1,673/month), compared to £16,480/year (£1,373/month) on £18,000. That is £3,600 more per year, or £300 more per month.
Why is the net difference (£3,600) less than the gross difference (£5,000)?
Of the £5,000 gross difference, you keep £3,600 (72%) after Income Tax and National Insurance. The rest goes to HMRC. Your marginal rate on £18,000 is 28% and on £23,000 it is 28%.
What is the effective tax rate on £18,000 vs £23,000?
The effective tax rate (Income Tax + NI as a percentage of gross) is 8.44% on £18,000 and 12.7% on £23,000. The higher salary has a higher effective rate because more income falls into higher tax bands.
How much tax and NI do I pay on £18,000 vs £23,000?
On £18,000: Income Tax £1,086 + NI £434 = £1,520 total deductions. On £23,000: Income Tax £2,086 + NI £834 = £2,920 total deductions.