2026/27 tax year

£16 an hour is how much a year? Salary and take-home pay

£16 an hour is £31,200 a year on a 37.5 hour week, or £2,600 a month and £600.00 a week before tax. After income tax and National Insurance in 2026/27 that is £25,984 a year, £2,165 a month, which works out at £13.32 for every hour worked.

How much is £16 an hour at different weekly hours?

Hours a week	Per week	Per month	Per year	Take-home per year	Take-home per month
20 hours	£320.00	£1,387	£16,640	£15,500	£1,292
25 hours	£400.00	£1,733	£20,800	£18,496	£1,541
30 hours	£480.00	£2,080	£24,960	£21,491	£1,791
35 hours	£560.00	£2,427	£29,120	£24,486	£2,041
37.5 hours	£600.00	£2,600	£31,200	£25,984	£2,165
40 hours	£640.00	£2,773	£33,280	£27,481	£2,290
45 hours	£720.00	£3,120	£37,440	£30,476	£2,540

Take-home pay breakdown by period for 2026/27
Item	Yearly	Monthly	Weekly	Daily	Hourly
Gross pay	£31,200.00	£2,600.00	£600.00	£120.00	£16.00
Income tax	−£3,726.00	−£310.50	−£71.65	−£14.33	−£1.91
National Insurance	−£1,490.40	−£124.20	−£28.66	−£5.73	−£0.76
Take-home pay	£25,983.60	£2,165.30	£499.68	£99.94	£13.32

Where your gross pay goes

Take-home £25,984(83%)Income tax £3,726(12%)National Insurance £1,490(5%)

Effective tax rate: 16.7%
Marginal rate: 28%
Personal allowance: £12,570
Tax code: 1257L

Effective rate is income tax, NI and loan repayments as a share of gross pay. Marginal rate is what you lose from the next £1 earned. Employer NI on this salary is £3,930 a year on top.

Income tax by band
Band	Rate	Taxable	Tax
Basic rate	20%	£18,630	£3,726.00
Total income tax		£18,630	£3,726.00

Add pension, student loan or different hours: Open £16/hour in the calculator

Is £16 an hour a good wage?

This is 1.3 times the £12.71 National Living Wage and below the UK median full-time hourly rate of £19.67. On a 40 hour week the same rate pays £33,280 a year and £2,290 a month after tax, while a 30 hour week gives £24,960 gross.

How much tax do you pay on £16 an hour?

Deductions on the 37.5 hour salary of £31,200 are £3,726 income tax and £1,490 National Insurance, an effective rate of 16.7%. The £12,570 personal allowance covers the first part of the year's pay, and the remaining £18,630 is taxed at 20%.

What difference does £1 an hour make?

Every extra pound an hour on a 37.5 hour week adds £1,950 a year to gross pay and about £1,404 to take-home at this level. A £17 rate would be £33,150 a year; £15 would be £29,250.

Frequently asked questions

How much is £16 an hour per year?

£16 an hour is £31,200 a year on 37.5 hours a week, £33,280 on 40 hours and £29,120 on 35 hours, assuming 52 paid weeks. Multiply the rate by weekly hours and then by 52.

How much is £16 an hour per month after tax?

On a 37.5 hour week, £16 an hour gives £2,600 a month before tax and £2,165 after income tax and National Insurance in 2026/27, using the standard tax code.

How much is £16 an hour per week?

£16 an hour is £600.00 a week for 37.5 hours, £640.00 for 40 hours and £320.00 for a 20 hour part-time week, all before tax.

Is £16 an hour above minimum wage?

Yes. £16 is above the National Living Wage of £12.71 an hour for workers aged 21 and over from 2026-04-01.