Answers · UK 2025/26
What is my take-home pay on £40,000 with a Plan 2 student loan in 2026/27?
On £40,000 in 2026/27 with a Plan 2 student loan, you pay £5,486 Income Tax, £2,194.40 National Insurance and £955.35 student loan repayments, leaving £31,364.25 take-home pay -- about £2,613.69 a month. That is £955.35 a year less than someone on the same salary without a student loan.
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On a £40,000 salary in 2026/27, the base Income Tax and National Insurance calculation is the same for everyone: taxable income of £27,430 gives £5,486 Income Tax (20% basic rate), and National Insurance is 8% of the same amount = £2,194.40, leaving £32,319.60 before student loan repayments. Plan 2 student loans (taken out by most English and Welsh undergraduates who started their course between 2012 and 2023) are repaid at 9% of income above the £29,385 threshold for 2026/27. On £40,000, the amount above the threshold is £10,615, so the repayment is 9% of £10,615 = £955.35 for the year, deducted automatically through PAYE alongside tax and National Insurance. This leaves take-home pay of £31,364.25 a year, around £2,613.69 a month -- £955.35 less than the £32,319.60 someone without a student loan would keep on the same salary. Student loan repayments are calculated on gross income above the threshold regardless of how much you originally borrowed, and any outstanding Plan 2 balance is written off 30 years after you became eligible to repay, whether or not it has been paid off in full.
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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.