Answers · UK 2025/26

What is my take-home pay on £62,000 with a Plan 5 student loan in 2026/27?

On £62,000 in 2026/27 with a Plan 5 student loan, you pay £12,232 Income Tax, £3,250.60 National Insurance and £3,330 student loan repayments, leaving £43,187.40 take-home pay -- about £3,598.95 a month.

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On a £62,000 salary in 2026/27, taxable income of £49,430 spans the basic and higher rate bands, giving £12,232 Income Tax (£37,700 at 20% plus £11,730 at 40%), while National Insurance comes to £3,250.60 (8% up to the £50,270 Upper Earnings Limit plus 2% above it). Before a student loan, that leaves £46,517.40. Plan 5 is repaid at 9% of income above a frozen £25,000 threshold, so on £62,000 the amount above the threshold is £37,000, giving a repayment of 9% of £37,000, which is £3,330 for the year, deducted automatically through PAYE. This leaves take-home pay of £43,187.40 a year, around £3,598.95 a month. Because Plan 5's threshold is so much lower than Plan 2's £29,385, a Plan 5 borrower at £62,000 repays £630 more per year than an otherwise identical Plan 2 borrower at the same salary, even though both plans charge the same 9% rate. This gap widens further at higher salaries and narrows at lower ones, since it depends entirely on the difference between the two thresholds (£4,385) multiplied by 9%. Plan 5 borrowers on salaries at this level, often five to ten years into their careers, are among the most likely to fully repay their loan before the 40-year write-off date, given the size of their annual repayments relative to typical loan balances.