Answers · UK 2025/26

What is my take-home pay on £55,000 with a Plan 1 student loan in 2026/27?

On £55,000 in 2026/27 with a Plan 1 student loan, you pay £9,432 Income Tax, £3,110.60 National Insurance and £2,529 student loan repayments, leaving £39,928.40 take-home pay -- about £3,327.37 a month.

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On a £55,000 salary in 2026/27, the standard deductions apply first: taxable income of £42,430 spans both the basic and higher rate bands, giving £9,432 Income Tax in total (£37,700 at 20% plus £4,730 at 40%). National Insurance is 8% on earnings between the £12,570 Primary Threshold and the £50,270 Upper Earnings Limit, plus 2% above that, giving £3,110.60. Before a student loan, that leaves £42,457.40. A Plan 1 student loan, which applies to most people who started an undergraduate course in England or Wales before September 2012 (or in Scotland or Northern Ireland at any time), is repaid at 9% of income above the £26,900 threshold for 2026/27. On £55,000, the amount above the threshold is £28,100, so the repayment is 9% of £28,100, which is £2,529 for the year, deducted automatically through PAYE. This leaves take-home pay of £39,928.40 a year, around £3,327.37 a month. Plan 1 has the lowest repayment threshold of the main English and Welsh loan plans, so borrowers on this plan tend to repay noticeably more each year than someone on the same salary with a Plan 2 or Plan 5 loan, whose thresholds are higher. Plan 1 loans are also written off after 25 years (or when the borrower reaches 65 for older loans), so long-term high earners may clear the balance before the write-off date, at which point repayments stop automatically.