Tax year 2026/27
Student loan repayment thresholds 2026/27
For 2026/27, undergraduate student loan repayments are 9% above the threshold for your plan. Postgraduate loan repayments are 6% above £21,000 and can be due alongside an undergraduate loan.
Annual repayment thresholds
| Plan | Annual threshold | Rate above threshold |
|---|---|---|
| Plan 1 | £26,900 | 9% |
| Plan 2 | £29,385 | 9% |
| Plan 4 | £33,795 | 9% |
| Plan 5 | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
Source: HMRC employer rates for 2026/27. These thresholds cover 6 April 2026 to 5 April 2027.
Example: Plan 2 on £35,000
An annual estimate is (£35,000 − £29,385) × 9% = £505.35. If a postgraduate loan also applies, (£35,000 − £21,000) × 6% adds £840. Together that is £1,345.35 before considering payroll-period rounding or other adjustments.
Why the annual estimate differs from a payslip
Payroll uses the threshold for the relevant pay period and its deduction rules. A bonus or irregular pay can therefore create deductions that do not match a simple annual amount divided by twelve. This page explains an annual comparison, not a prediction of each payslip.
Which plan should I choose?
Use the plan confirmed by Student Loans Company or your employer’s notice. Where more than one undergraduate plan applies, payroll guidance handles the combination; a postgraduate loan can be additional. Check which repayment plan you are on rather than guessing from age alone.
Include repayments in your take-home estimate
Use the student-loan controls in the UK tax calculator, then read the calculation assumptions. The £35,000 salary page provides a starting point before your own pension and loan deductions.
Questions and answers
Do student loans reduce Income Tax?
Ordinary student loan repayments are deductions from pay, not a reduction of taxable pay.
Can postgraduate and undergraduate repayments apply together?
Yes. The postgraduate repayment is additional when its threshold and the relevant undergraduate threshold are exceeded.