As the dynamics of the UK’s wealth and income distribution shift, there is always interest in understanding which income brackets truly place individuals in the upper echelons of the nation’s earners. One commonly posed question is: where does an income of £100,000 position an individual within the broader UK population?
The data shows that a salary of £100k in the UK would place you in the top 5% of income earners in the UK. In percentile terms, this is equivalent to the 95th percentile.
Let’s dig a little further to understand what percentage of UK population earn over 100k.
Is £100,000 a good salary in the UK?
It’s always important to take things in context, so let’s compare against the median and mean incomes in the UK. Based on income data from the ONS, the UK average income is around £36,768 whereas the median is £27,696. It’s clear that in comparison to these figures, a salary of £100k in the UK is excellent.
Please see our UK income percentile calculator for more information.
However it’s important to note that ‘good’ or ‘excellent’ are subjective terms. What’s good for one person, might be great for another, or terrible for the third! Ultimately, you have to compare the £100k in relation to what others in a similar role earn, as that’s a good market based benchmark.
The other point to consider is whether the £100,000 salary is sufficient to cover your needs and expenses. We’ve covered that topic in greater detail in many different articles, so I recommend checking those out on our website. For example, important costs like groceries, rent, mortgages, education for children, need to be considered.
How much is £100k after income tax?
When earning £100k as an individual, your take-home salary after paying income taxes and national insurance is around £67,050 per year, which is equivalent to roughly £5,590 per month.
The table below outlines the big line items in relation to the typical taxes and deductions.
| Yearly | Monthly | |
|---|---|---|
| Gross Income | £100,000 | £8,333 |
| Taxable Income | £87,430 | £7,285 |
| Income Taxes | £27,432 | £2,286 |
| National Insurance | £5,518 | £460 |
| Take-Home Pay | £67,049 | £5,587 |
When looking at after-tax income percentiles, £67k of after-tax income would also put you in the 95th percentile, or top 5% of earners, in the UK. This reinforces the perspective that earning such a sum, both pre and post-tax, distinguishes you as one of the higher earners in the nation.
How do I make £100k in the UK?
Amongst other things, your chosen profession and where you live will be the primary factors that determine your income level. In the UK, the two professions with the highest levels of income are in the “Information and Communications” and “Finance and Insurance” sectors.
Working in London would also help boost your salary – at least optically. It is important to keep in mind that as living expenses in London are higher, a salary of £100k in London is not equivalent to a salary of £100k in Newcastle. You’re much more likely to save more money at the end of the day by living in the latter with the same income level.
Before You Go…
£100k is an excellent salary in the UK, as we have seen. However it’s not nearly enough to get you in the top 1% of UK income earners, which requires a substantial step up!
If would enjoyed this piece and want to look at more 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.
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