Answers · UK 2025/26
How much is my Plan 1 student loan repayment on a £60,000 salary?
On a £60,000 salary in 2026/27, a Plan 1 student loan repayment is £2,979 for the year (9% of the £33,100 above the £26,900 threshold), leaving take-home pay of £42,378.40 a year after Income Tax, National Insurance and the loan repayment -- about £3,531.53 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 £60,000 salary, the amount above the threshold is £33,100, so the annual repayment is 9% of £33,100, which is £2,979, or £248.25 a month, deducted automatically through PAYE. The underlying Income Tax on £60,000 is £11,432 (£7,540 at 20% on the first £37,700 of taxable income, plus £3,892 at 40% on the remaining £9,730 above the higher-rate threshold) and National Insurance is £3,210.60 (£3,016 at 8% up to the Upper Earnings Limit, plus £194.60 at 2% above it), so total deductions are £17,621.60, leaving take-home pay of £42,378.40 a year, around £3,531.53 a month. Because part of this salary falls in the higher-rate band, any further pay rise carries a combined marginal deduction of 51% once the Plan 1 repayment is included.
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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.