Answers · UK 2025/26
How much is my Plan 1 student loan repayment on a £40,000 salary?
On a £40,000 salary in 2026/27, a Plan 1 student loan repayment is £1,179 for the year (9% of the £13,100 above the £26,900 threshold), leaving take-home pay of £31,140.60 a year after Income Tax, National Insurance and the loan repayment -- about £2,595.05 a month.
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Plan 1 student loans are repaid at 9% of income above a 2026/27 threshold of £26,900. On a £40,000 salary, the amount above the threshold is £13,100, so the annual repayment is 9% of £13,100, which is £1,179, or £98.25 a month, deducted automatically through PAYE. The underlying Income Tax on £40,000 is £5,486 (20% of the £27,430 taxable after the £12,570 Personal Allowance) and National Insurance is £2,194.40 (8% of the same £27,430), so total deductions are £8,859.40, leaving take-home pay of £31,140.60 a year, around £2,595.05 a month. At this income level a Plan 1 borrower's effective marginal deduction rate on any additional basic-rate income is 37% (20% Income Tax, 8% National Insurance, 9% student loan), compared with 28% for someone without a student loan.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.