Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
£20,450
Income Tax
- £1,574
NIC (National Insurance Contribution)
- £1,044
Total tax
- £2,618
Net pay
* £17,832
Marginal tax rate
33.3%
Average tax rate
12.8%
87.2%
Net pay
12.8%
Total tax
Total tax
Net pay
The Taxberg
£17,832
Net pay
£3,078
Tax the employer pays
£2,618
Tax you pay
Total tax paid
£5,696
Did you know your employer also pays tax on your salary? It costs the employer £3,078 to pay you £20,450. In other words, every time you spend £10 of your hard-earned money, £2.79 goes to the government.
Real tax rate
24.2%
So, with you and the employer both paying tax, what used to be a 12.8% tax rate now rises to 24.2%, meaning your real tax rate is actually 11.4% higher than what it seemed at first.
Summary
If you make £20,450 a year living in United Kingdom, you will be taxed £2,618. That means that your net pay will be £17,832 per year, or £1,486 per month. Your average tax rate is 12.8% and your marginal tax rate is 33.3%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of £100 in your salary will be taxed £33.25, hence, your net pay will only increase by £66.75.
Bonus Example
A £1,000 bonus will generate an extra £668 of net incomes. A £5,000 bonus will generate an extra £3,338 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
GBP 16,982
17.0%
1
Canada
GBP 15,162
25.9%
2
Middle East
Country 
Net pay
Average tax
Rank
United Arab Emirates
GBP 19,427
5.0%
1
Qatar
GBP 19,428
5.0%
2
Bahrain
GBP 18,814
8.0%
3
Oman
GBP 18,814
8.0%
4
Saudi Arabia
GBP 18,405
10.0%
5
Kuwait
GBP 18,200
11.0%
6
Israel
GBP 17,275
15.5%
7
Egypt
GBP 15,553
24.0%
8
Lebanon
GBP 15,485
24.3%
9
Turkey
GBP 12,055
41.1%
10
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NOTE* Withholding is calculated based on the tables of United Kingdom, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.