2026/27 tax year

£21 an hour is how much a year? Salary and take-home pay

£21 an hour is £40,950 a year on a 37.5 hour week, or £3,413 a month and £787.50 a week before tax. After income tax and National Insurance in 2026/27 that is £33,004 a year, £2,750 a month, which works out at £16.92 for every hour worked.

How much is £21 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	£420.00	£1,820	£21,840	£19,244	£1,604
25 hours	£525.00	£2,275	£27,300	£23,176	£1,931
30 hours	£630.00	£2,730	£32,760	£27,107	£2,259
35 hours	£735.00	£3,185	£38,220	£31,038	£2,587
37.5 hours	£787.50	£3,413	£40,950	£33,004	£2,750
40 hours	£840.00	£3,640	£43,680	£34,969	£2,914
45 hours	£945.00	£4,095	£49,140	£38,900	£3,242

Take-home pay breakdown by period for 2026/27
Item	Yearly	Monthly	Weekly	Daily	Hourly
Gross pay	£40,950.00	£3,412.50	£787.50	£157.50	£21.00
Income tax	−£5,676.00	−£473.00	−£109.15	−£21.83	−£2.91
National Insurance	−£2,270.40	−£189.20	−£43.66	−£8.73	−£1.16
Take-home pay	£33,003.60	£2,750.30	£634.68	£126.94	£16.92

Where your gross pay goes

Take-home £33,004(81%)Income tax £5,676(14%)National Insurance £2,270(6%)

Effective tax rate: 19.4%
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 £5,393 a year on top.

Income tax by band
Band	Rate	Taxable	Tax
Basic rate	20%	£28,380	£5,676.00
Total income tax		£28,380	£5,676.00

Add pension, student loan or different hours: Open £21/hour in the calculator

Is £21 an hour a good wage?

This is 1.7 times the £12.71 National Living Wage and above the UK median full-time hourly rate of £19.67. On a 40 hour week the same rate pays £43,680 a year and £2,914 a month after tax, while a 30 hour week gives £32,760 gross.

How much tax do you pay on £21 an hour?

Deductions on the 37.5 hour salary of £40,950 are £5,676 income tax and £2,270 National Insurance, an effective rate of 19.4%. The £12,570 personal allowance covers the first part of the year's pay, and the remaining £28,380 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 £22 rate would be £42,900 a year; £20 would be £39,000.

Frequently asked questions

How much is £21 an hour per year?

£21 an hour is £40,950 a year on 37.5 hours a week, £43,680 on 40 hours and £38,220 on 35 hours, assuming 52 paid weeks. Multiply the rate by weekly hours and then by 52.

How much is £21 an hour per month after tax?

On a 37.5 hour week, £21 an hour gives £3,413 a month before tax and £2,750 after income tax and National Insurance in 2026/27, using the standard tax code.

How much is £21 an hour per week?

£21 an hour is £787.50 a week for 37.5 hours, £840.00 for 40 hours and £420.00 for a 20 hour part-time week, all before tax.

Is £21 an hour above minimum wage?

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