£45,000 after tax explained
If you earn £45,000 per year before tax in the UK, your tax liability will depend on a few factors, including your age, tax status, and any other income or deductions you have.
Assuming you are under 65 years old and don't have any special tax circumstances, your tax liability for the 2022/23 tax year would be as follows:
- You would receive a personal allowance of £12,570, which means the first £12,570 of your income would not be subject to tax.
- For the next £32,430 of your income, you would pay tax at the basic rate of 20%, which would amount to £6,486.
In addition to income tax, you may also be subject to National Insurance contributions (NICs), which are used to fund state benefits like the National Health Service and the State Pension. Assuming you are an employee, you would pay Class 1 NICs at a rate of 12% on earnings between £9,568 and £50,270 per year, and 2% on earnings above that threshold. This would amount to £4,653 in NICs for the year.
Therefore, the total tax liability (income tax plus NICs) for someone earning £45,000 per year in the UK would be approximately £11,139. This would leave a net income of around £33,861 per year after tax.