How Much Tax Do You Pay on Your First Job in the UK?

On your first job you pay no income tax on earnings up to £12,570 a year, then 20% on income above that up to £50,270. National Insurance is 8% on earnings over £12,570. So a starting salary of, say, £25,000 leaves most of it in your pocket.

Last reviewed: 30 May 2026 · 2 min read

Key Facts

Personal allowance is £12,570 — earn less and you pay no income tax
Basic rate is 20% on income between £12,570 and £50,270
National Insurance is 8% on earnings above £12,570

Income tax on a starting salary

Everyone gets a personal allowance of £12,570 a year that's completely tax-free. You only pay income tax on earnings above it: 20% from £12,570 up to £50,270, then 40% above that.

So on a £25,000 salary, the first £12,570 is tax-free and you pay 20% on the remaining £12,430 — about £2,486 of income tax for the year. Earn under £12,570 in total and you pay no income tax at all.

National Insurance and your payslip

On top of income tax, you pay National Insurance. The main employee rate is 8% on earnings above £12,570 a year. It comes out automatically through PAYE alongside your tax, so you never have to pay it yourself.

Your payslip will show gross pay, then deductions for income tax, National Insurance and possibly a pension and student loan. What's left is your take-home pay. If anything looks off — especially your tax code — it's worth checking, as errors are common in a first job.

FAQ

Frequently Asked Questions

Why is so much tax coming out of my first payslip? +

Often it's a tax code problem. New starters are sometimes put on an emergency tax code that doesn't give your full personal allowance, so too much is deducted. This usually corrects itself, and HMRC refunds any overpayment, but you can speed it up by checking your tax code with HMRC.

Do I pay tax if I only work part-time or over summer? +

Only if your total earnings for the tax year go over £12,570. Many part-time and summer jobs pay less than that across the year, so you'd owe no income tax. If tax was deducted but your annual total stayed under the allowance, you can reclaim it from HMRC.

What is a tax code and why does it matter? +

Your tax code tells your employer how much tax-free allowance to apply. The standard code for 2026/27 is 1257L, reflecting the £12,570 allowance. A wrong code means you pay too much or too little tax, so it's worth checking yours matches your circumstances, especially when starting a new job.

Topics covered

tax first job income tax

This article is for informational purposes only and does not constitute financial advice. Always do your own research or speak to a qualified financial adviser before making financial decisions.