S
SalarySorted

Your details

£/hr

= £25,397 per year

40h
1h40h standard80h
0%
0%30%

The standard code for most UK employees. You receive the full £12,570 personal allowance tax-free.

Your breakdown

Annual gross

£25,397

Annual take-home

£21,805

Monthly take-home

£1,817

Weekly take-home

£419

Effective rate14.1%
Marginal rate28%
Tax bandBasic rate
Take-homeIncome TaxNI

Based on your inputs. Actual pay may vary depending on your holiday entitlement, contract terms and employer. For guidance only.

Gross salary
£25,397
Income TaxBasic rate
-£2,565
National Insurance
-£1,026
Take-home pay
£21,805

In plain English

At £12.21 per hour for 40 hours over 52 weeks, your gross annual salary is £25,397 in England and Wales. You are in the Basic rate band, paying £2,565 in income tax and £1,026 in National Insurance. Your take-home is £21,805 per year — £1,817 per month or £419 per week. Your effective deduction rate is 14.1%. An extra £1 per hour (£2,080 more per year) would add approximately £582 to your take-home.

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What if...

£12.21 an hour after tax -- 2026/27 breakdown

Hourly rate

£12.21

Annual take-home

£21,805

Monthly take-home

£1,817

Weekly take-home

£419

Deductions at a glance

Gross annual£25,396.8
Income Tax (20%)-£2,565
National Insurance (8%)-£1,026
Take-home pay£21,805

£12.21 an hour was the National Living Wage rate for workers aged 21 and over before April 2026. It applied to a wide range of roles in retail, hospitality, warehousing and care. From April 2026 this rate was superseded by the new National Living Wage of £12.71 per hour. If you are still being paid at this rate, check whether you are entitled to the updated minimum wage.

Working 40 hours a week for 52 weeks a year at £12.21 an hour, your take-home pay after income tax and National Insurance is £21,805 per year -- that is £1,817 per month or £419 per week. All taxable income falls within the basic rate band, so every pound of taxable earnings above your personal allowance is taxed at 20%. Based on 40 hours per week, 52 weeks per year. Use our hourly pay calculator to adjust for your hours.

Even at this hourly rate, auto-enrolment pension contributions are worth taking seriously. If your employer offers salary sacrifice, contributions come out before tax and National Insurance are calculated, so the real cost to your take-home is lower than the headline figure suggests. Starting early and increasing contributions whenever you receive a pay rise can make a significant difference over a working lifetime.

Frequently asked questions

How much is £12.21 an hour after tax per month?

At £12.21 an hour working 40 hours a week and 52 weeks a year, your monthly take-home pay in 2026/27 is £1,817. Your annual take-home is £21,805 and your weekly take-home is £419. These figures are for England and Wales using the standard 1257L tax code with no pension contributions or student loan.

How much income tax do I pay on £12.21 an hour?

On a gross annual salary of £25,396.8 (£12.21 for 40 hours over 52 weeks), you pay no income tax on the first £12,570 (your personal allowance). The remaining £12,827 is taxed at the basic rate of 20%, giving an income tax bill of £2,565 per year.

How much National Insurance do I pay on £12.21 an hour?

National Insurance is charged at 8% on earnings between £12,570 and £50,270. On a gross annual salary of £25,396.8, you pay 8% of £12,827, coming to £1,026 per year. There are no NI contributions on income below £12,570.

Is £12.21 an hour still the legal minimum wage?

No. £12.21 an hour was the National Living Wage rate for workers aged 21 and over until April 2026. From April 2026 it increased to £12.71 per hour. If you are 21 or over and still being paid £12.21, you are entitled to claim the difference. The National Minimum Wage for workers aged 18 to 20 is £10.00 per hour from April 2026.

How can I increase my take-home pay on £12.21 an hour?

Check your tax code on your payslip -- the standard code for most employees is 1257L. If yours is different, contact HMRC to confirm it is correct, as an error could mean you are overpaying tax. If your employer offers a salary sacrifice pension scheme, contributions reduce your taxable income before income tax and National Insurance are calculated, increasing the value of each pound saved.