True Take-Home

£16 an hour is how much a year?

£16 an hour is £31,200 a year at a full-time 37.5-hour week, £2,600.00 a month before tax, and about £2,165.30 a month in your pocket after income tax and National Insurance. These figures use the 2026/27 UK tax year's HMRC rates (checked 2026-08-28), England, Wales and Northern Ireland bands, the standard 1257L tax code, 52 paid weeks (employees are paid for holiday), and no pension or student loan, a different tax code, Scottish bands or a loan plan changes the take-home, and the full hourly calculator handles all of those. The table below shows the same £16 rate across 20, 30, 37.5 and 40-hour weeks, gross and after tax.

£16/hour by working week

Hours/weekAnnual grossMonthly grossTake-home / yearTake-home / month
20£16,640.00£1,386.67£15,500.40£1,291.70
30£24,960.00£2,080.00£21,490.80£1,790.90
37.5£31,200.00£2,600.00£25,983.60£2,165.30
40£33,280.00£2,773.33£27,481.20£2,290.10

52 paid weeks (holiday is paid for employees), England bands, standard 1257L code, no pension or student loan. At 37.5 hours you keep 83.3% of gross, each hour is worth £13.32 after tax against the £16headline.

Nearby hourly rates

Any other rate, plus pension and student loan: hourly wage calculator · full deductions on the main calculator.

2026/27 HMRC rates, checked 2026-08-28.