£21,000 vs £23,000 After Tax 2025-26
Side-by-side UK take-home pay comparison · Income Tax + National Insurance
You keep £1,440 more per year
Earning £23,000 instead of £21,000 gives you £120 more per month (£28/week). Of the £2,000 gross difference, you keep 72% after tax and NI.
£21,000 — Income Tax bands
| Band | Tax |
|---|---|
| Personal Allowance | — |
| Basic Rate (20%) | £1,686 |
| Total Income Tax | £1,686 |
£23,000 — Income Tax bands
| Band | Tax |
|---|---|
| Personal Allowance | — |
| Basic Rate (20%) | £2,086 |
| Total Income Tax | £2,086 |
Full breakdown — £21,000 vs £23,000
| £21,000 | £23,000 | Difference | |
|---|---|---|---|
| Gross salary | £21,000 | £23,000 | +£2,000 |
| Income Tax | £1,686 | £2,086 | +£400 |
| National Insurance | £674 | £834 | +£160 |
| Total deductions | £2,360 | £2,920 | +£560 |
| Net pay (annual) | £18,640 | £20,080 | +£1,440 |
| Net monthly | £1,553 | £1,673 | +£120 |
| Net weekly | £358 | £386 | +£28 |
| Net daily | £72 | £77 | +£5 |
| Effective tax rate | 11.24% | 12.7% | |
| Marginal tax rate | 28% | 28% |
£21,000 vs £23,000 after tax — what you actually keep
On a £21,000 salary, you take home £18,640 per year (£1,553/month). On £23,000, you take home £20,080 per year (£1,673/month). The £2,000 gross difference translates to £1,440 extra take-home — you keep 72% of the raise.
Income Tax on £21,000 is £1,686, rising to £2,086 on £23,000. National Insurance increases from £674 to £834. Together these deductions mean HMRC takes £560 of the £2,000 difference.
Why the effective rate changes
At £21,000 the effective tax rate is 11.24%, 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 £21,000?
On £23,000 you take home £20,080/year (£1,673/month), compared to £18,640/year (£1,553/month) on £21,000. That is £1,440 more per year, or £120 more per month.
Why is the net difference (£1,440) less than the gross difference (£2,000)?
Of the £2,000 gross difference, you keep £1,440 (72%) after Income Tax and National Insurance. The rest goes to HMRC. Your marginal rate on £21,000 is 28% and on £23,000 it is 28%.
What is the effective tax rate on £21,000 vs £23,000?
The effective tax rate (Income Tax + NI as a percentage of gross) is 11.24% on £21,000 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 £21,000 vs £23,000?
On £21,000: Income Tax £1,686 + NI £674 = £2,360 total deductions. On £23,000: Income Tax £2,086 + NI £834 = £2,920 total deductions.