In the intricate web of financial statistics and socioeconomic rankings, the notion of the “top 1%” has become emblematic in many societies, particularly in discussions about income disparity. For many, this metric signifies the pinnacle of financial success. But what does it mean to be in the top 1% of income earners in the UK?
Based on recent data, one needs to earn a pre-tax income of at least £182,000 to £183,000 annually to be considered in the top 1% of income earners in the UK.
But income taxes can really change that situation. So how does that translate to take-home pay after the taxman has had his share? The answer surprised me as well. Please do keep reading to find out more.
We derived this information using our UK income percentile calculator. Please do take a look there to further slice and dice the data to understand how different income levels stack up.
The data does change on a frequent basis, so please do use the calculator for the most current information.
How much is £182k after income tax?
When earning £182k as an individual, your take-home salary after paying income taxes and national insurance is around £108k per year, which is equivalent to roughly £9,000 per month.
Let’s take a look at where the big tax hits are in the table below.
| Yearly | Monthly | |
|---|---|---|
| Gross Income | £182,000 | £15,167 |
| Taxable Income | £182,000 | £15,167 |
| Income Taxes | £68,103 | £5,675 |
| National Insurance | £7,159 | £597 |
| Take-Home Pay | £106,738 | £8,895 |
Taxes do take a quite big bite out this income as the UK uses a progressive income tax system. Once you’re above the £125,140 income threshold, you are in the “Additional Rate” tax bracket which means that your marginal tax rate is 45%. For every pound earned over that threshold, 45p goes to HMRC.
Most of the salary earners, 80% to be precise, in the UK fall in the Basic Rate bucket of 20%.
What is the Top 1 Percent Income After-Taxes in the UK?
You might actually be surprised to learn that being in the top 1% of income on a before-tax basis does not mean that you automatically are in the top 1% after income taxes have been deducted.
To be in the top-1% in the UK on an after-tax basis, you need to bring in £121,000 per year. This data is sourced from our after-tax income percentiles calculator.
As we saw above, earning £182,000 on a pre-tax basis translates to only £106,738 on an after-tax basis. This actually places you in the 98th percentile on after-tax basis. A bit disheartening, I’m sure!
If we work backwards based on the marginal tax brackets, you need to earn at least £26,000 more to end up with £14,300 in your pocket.
This means you need to earn at least £207,500 per year to be in the top-1% on both a pre-tax and an after-tax basis!
Before You Go…
Being in the top-1% of income earners in the UK is no easy task! Even earning a £100k in the UK is no easy task, but many more people do manage to hit that level.
If would like to look at additional comparative data, try the following calculators:
It’s important to remember that in order to keep growing your net worth over time, it’s important to invest wisely. Our whole blog is dedicated to help you get on the path of financial freedom. Feel free to browse around and read through the articles.
There are plenty of investment books and podcasts that you can use as a learning resource along the way to help you reach your goal faster. We’ve also covered in great detail about investing in stocks, bonds, or real estate, individuals can generate passive income and secure their financial future.
FAQs
What is the 99th percentile salary UK?
As per the latest data, you have to be earning at least £182,000 individually on an annual basis to be in the 99th percentile for salary in the UK.
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