Answers · UK 2025/26
What is my take-home pay on £40,000 with both a Plan 2 and a Postgraduate Loan in 2026/27?
On £40,000 in 2026/27 with both a Plan 2 undergraduate loan and a Postgraduate Loan, you pay £5,486 Income Tax, £2,194.40 National Insurance, £955.35 Plan 2 repayments and £1,140 Postgraduate Loan repayments, leaving £30,224.25 take-home pay -- about £2,518.69 a month.
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On a £40,000 salary in 2026/27, the standard deductions are £5,486 Income Tax (20% on the £27,430 above the £12,570 Personal Allowance) and £2,194.40 National Insurance (8% of the same £27,430), leaving £32,319.60 before student loans. The Plan 2 loan is repaid at 9% of income above £29,385, so on £40,000 the amount above the threshold is £10,615, giving a repayment of £955.35. The Postgraduate Loan is repaid separately at 6% of income above £21,000, so the amount above that threshold is £19,000, giving a repayment of £1,140. The two repayments total £2,095.35 for the year, leaving take-home pay of £30,224.25, around £2,518.69 a month. At this salary the Plan 2 repayment (£955.35) has overtaken the Postgraduate Loan repayment (£1,140 -- still slightly larger here, but closing the gap compared with lower salaries), since Plan 2's 9% rate on a lower threshold grows faster as salary rises. Both loans continue to be repaid independently and simultaneously through PAYE for as long as income exceeds each respective threshold.
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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.