Minimum Wage After Tax by Age Band: What You Actually Take Home in 2026/27

Minimum Wage After Tax: Understanding Your Take-Home Pay by Age Band

Knowing the statutory hourly rate is only half the picture. What really matters for your budget is the minimum wage after tax — the amount that lands in your bank account each month. Your age determines which minimum wage rate applies, and that directly affects your gross pay and net take-home.

National Living Wage (21 and over) – £12.71/hr from April 2026

If you are aged 21 or over, you are entitled to the National Living Wage (NLW). From April 2026, the rate increases to £12.71 per hour, up from £12.21 in 2025/26. For a full-time worker on a 37.5-hour week, gross annual earnings are around £24,785. After deducting income tax and National Insurance, your minimum wage after tax works out at approximately £1,780 per month (or £21,364 per year) for workers in England, Wales and Northern Ireland. Scottish workers take home slightly more — about £1,784 per month — because of different tax bands.

If you work a 40-hour week, gross pay rises to £26,437 and take-home increases to roughly £1,880 per month. These estimates use the standard tax code 1257L (personal allowance £12,570) and assume no pension contributions or student loan repayments. For a more personalised calculation, use our pay guides or check the pay data section.

National Minimum Wage (18–20) – £10.85/hr

Workers aged 18 to 20 are entitled to a lower minimum wage: £10.85 per hour from April 2026 (up from £10.00). On a 40-hour week, gross annual pay is £22,568. After tax and NI, the estimated minimum wage after tax is about £1,647 per month (£19,768 per year). The same tax rules apply as for older workers, so the lower take-home is purely due to the lower hourly rate.

Under 18 and Apprentice Rate – £8.00/hr

For workers under 18 (but above the compulsory school leaving age) and for apprentices under 19 or in their first year, the minimum wage is £8.00 per hour from April 2026. A 40-hour week gives gross annual earnings of £16,640. After income tax and NI, take-home is approximately £1,292 per month (£15,500 per year). Many younger workers work part-time hours, so their actual take-home may be lower and could fall below the tax threshold.

How the ONS Data Compares

The Office for National Statistics (ONS) reports that median weekly earnings for full-time employees were £766.60 in April 2025, with median gross annual earnings of £39,039. These figures are significantly higher than minimum wage levels, reflecting the fact that many workers earn above the statutory floor. However, for those on the minimum wage, understanding your minimum wage after tax is essential for budgeting.

Key Factors That Affect Your Take-Home Pay

• Hours worked: The examples above assume 37.5 or 40 hours per week. Part-time workers will have proportionally lower gross and net pay.
• Tax code: Most workers use code 1257L, but if you have other income or benefits, your code may differ.
• Pension contributions: Auto-enrolment means 5% of your qualifying earnings may go into a workplace pension, reducing take-home pay.
• Student loan repayments: If you have a Plan 1, 2, 4, or 5 student loan, repayments will further reduce net pay.
• Scottish vs. rest of UK: Scottish income tax has a 19% starter rate, giving a slightly higher take-home for minimum wage workers.

Always Check Your Contract and Current Rates

Statutory minimum wage rates are reviewed annually and usually change each April. The figures here are for the 2026/27 tax year. For the most up-to-date information, visit UK Minimum Wage and explore our topics section. Remember that your employer must pay at least the correct rate for your age, and you can check your payslip to ensure deductions are correct.

Summary

Your minimum wage after tax depends on your age band, weekly hours, tax code, and any additional deductions. For a 21+ worker on 37.5 hours, expect around £1,780 per month. For 18–20 year olds on 40 hours, around £1,647 per month. For under-18s and apprentices on 40 hours, around £1,292 per month. Use a take-home calculator or our pay guides to get a precise figure for your situation.