Short answer
£40,000 in London is above the UK median of about £37,430 (7% higher). Comfortable outside London and Edinburgh; tight in central London.
How it compares to the UK median
The latest ONS figure for median full-time earnings is roughly £37,430. £40,000 is £2,570 above that, placing it in the upper half of UK earners.
What it looks like after tax
For 2026/27, £40,000 gross gives you about £32,320 per year (£2,693 per month) — after £5,486 Income Tax and £2,194 National Insurance. The calculator below lets you add a pension or student loan.
Cost of living in London
Housing is the biggest variable. In London, average rent for a one-bed flat ranges widely; outside London, £40,000 typically covers rent, bills, transport and modest savings with room to spare. In central London, the same figure is materially tighter.
Who finds £40,000 comfortable?
Single earners outside major city centres, dual-income households in cities, and anyone without significant debt repayments will find £40,000 comfortable in 2026/27.