How the UK Hourly Wage Calculator Works
This calculator converts any hourly rate into a full salary breakdown for the 2026/27 UK tax year. If you prefer to calculate your earnings from an annual figure, you can use our main take-home pay calculator. It applies HMRC's confirmed income tax bands, Class 1 National Insurance thresholds, and standard auto-enrolment pension rules.
Step 1 — Calculate Gross Annual Salary
Your gross annual salary is calculated as: Hourly Rate × Hours Per Week × 52. For example, £15/hr working 37.5 hours/week produces £29,250 gross per year.
Step 2 — Apply the Personal Allowance
Once you understand how tax codes work, you'll know that under the standard tax code 1257L, the first £12,570 of your income is completely free of Income Tax. Your taxable income is everything you earn above that threshold.
Step 3 — Calculate Income Tax & NI
Income Tax is applied at 20% (Basic Rate) on taxable income up to £50,270, then 40% (Higher Rate) up to £125,140, and 45% (Additional Rate) above that. Class 1 National Insurance is charged at 8% on earnings between £12,570 and £50,270, and 2% above £50,270. Taking on a side hustle can push your total earnings into a new bracket; you should always calculate the tax impact of a second job before accepting additional hours.
Step 4 — Deduct Pension
Under UK auto-enrolment rules, if you are eligible, a minimum 5% employee pension contribution is deducted from your qualifying earnings (£6,240–£50,270) before your final net take-home pay is calculated.
Common Hourly Wage FAQs
How do I convert my hourly rate to an annual salary?
Multiply your hourly rate by the number of hours you work per week, then multiply by 52 (weeks per year). For example, £15/hr × 37.5 hrs × 52 = £29,250 gross per year.
How much tax do I pay on an hourly wage?
After your £12,570 Personal Allowance (tax code 1257L), income up to £50,270 is taxed at 20% (Basic Rate). National Insurance is charged at 8% on earnings between £12,570 and £50,270.
What is the UK minimum wage in 2026/27?
The National Living Wage for workers aged 21+ is £12.21 per hour for 2025/26. Always check Gov.uk for the latest confirmed rates.
