Answers · UK 2025/26
How much is my Plan 2 student loan repayment on a £40,000 salary?
On a £40,000 salary in 2026/27, a Plan 2 student loan repayment is £955.35 for the year (9% of the £10,615 above the £29,385 threshold), leaving take-home pay of £31,364.25 a year after Income Tax, National Insurance and the loan repayment -- about £2,613.69 a month.
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Plan 2 student loans are repaid at 9% of income above a 2026/27 threshold of £29,385. On a £40,000 salary, the amount above the threshold is £10,615, so the annual repayment is 9% of £10,615, which is £955.35, or £79.61 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 £8,635.75, leaving take-home pay of £31,364.25 a year, around £2,613.69 a month. This is one of the most commonly searched Plan 2 combinations, as £40,000 is a common early-to-mid career salary for graduates roughly five to ten years after finishing a degree.
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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.