Answers · UK 2025/26
How much is my Plan 5 student loan repayment on a £26,000 salary?
On a £26,000 salary in 2026/27, a Plan 5 student loan repayment is £90 for the year (9% of the £1,000 above the £25,000 threshold), leaving take-home pay of £22,149.60 a year after Income Tax, National Insurance and the loan repayment -- about £1,845.80 a month.
Full answer
Plan 5 student loans, used by most English undergraduates who started their course from August 2023 onwards, are repaid at 9% of income above a threshold frozen at £25,000 for 2026/27. On a £26,000 salary, the amount above the threshold is £1,000, so the annual repayment is 9% of £1,000, which is £90, or £7.50 a month, deducted automatically through PAYE alongside Income Tax and National Insurance. The underlying Income Tax on £26,000 is £2,686 (20% of the £13,430 taxable after the £12,570 Personal Allowance) and National Insurance is £1,074.40 (8% of the same £13,430), so total deductions are £3,850.40, leaving take-home pay of £22,149.60 a year, around £1,845.80 a month. Because the Plan 5 threshold is frozen rather than uprated each year, a graduate on a starting salary just above £25,000 will see the loan repayment take an increasing share of any pay rise over time.
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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.