£23,000 Graduate Salary After Tax 2025-26
Take-home pay with and without Plan 2 student loan repayments.
You earn below the repayment threshold — £0 student loan repayment
Plan 2 repayments only begin on earnings above £27,295. At £23,000, no student loan is deducted.
£23,000 — without vs with Plan 2 student loan
| Item | Without student loan | With Plan 2 |
|---|---|---|
| Gross salary | £23,000 | £23,000 |
| Income Tax | −£2,086 | −£2,086 |
| National Insurance | −£834 | −£834 |
| Student Loan (Plan 2) | — | −£0 |
| Annual take-home | £20,080 | £20,080 |
| Monthly take-home | £1,673 | £1,673 |
Plan 2 student loan breakdown
What does a £23,000 graduate salary mean in practice?
On a £23,000 graduate salary, you take home £20,080/year (£1,673/month, £386/week, £77/day). Based on a 37.5-hour week, your net hourly equivalent is £10.30 without student loan. Your salary is 34% below the UK median salary of £35,000 and 23% below the typical UK graduate starting salary of ~£30,000.
Your salary of £23,000 is below the £27,295 Plan 2 repayment threshold, so no student loan is deducted through PAYE this year. Your earnings fall in the Basic Rate (20%) band — for every £1 you earn, you keep approximately 87.3p after tax and NI. Repayments will start automatically once your income exceeds £27,295.
As a new graduate on PAYE, your employer also makes Employer NI contributions (13.8% on earnings above £9,100) — this does not reduce your take-home but represents the full cost of employing you. If you have both a Plan 2 loan and a Postgraduate loan, both are deducted simultaneously through PAYE, reducing take-home further. Consider salary sacrifice into a pension if your employer matches contributions — this reduces your taxable pay and may also reduce your student loan repayments.
Personalised insights — £23,000 graduate salary
On £23,000 you keep 87p per £1 (87p with Plan 2), losing the equivalent of £11 in IT+NI each working day. That gross sits 0.97× the annualised National Living Wage (£23,810) and is £2,000 below the typical graduate entry median of £25,000 (net £21,520). London graduate roles typically pay a 20% weighting premium — at £27,600 gross you would take home £3,312/year more, though London rent absorbs ~£300-£500/month of that uplift vs regional hubs like Manchester, Bristol or Leeds. Your first £5k promotion would add £3,600 net (marginal rate 28%). You are using 100% of your Personal Allowance. Below the Higher Rate threshold (£50,270), a Stocks & Shares ISA (20k/year tax-free) is typically the most flexible saving vehicle — complementary to the 3-5% employer-matched pension auto-enrolment minimum. Saving 20% of take-home (£335/month) fills a full £20,000 ISA in 60 months — a strong 12-month habit to set in graduate year one.
Frequently asked questions
When do I start repaying my student loan on £23,000?
You earn below the £27,295 Plan 2 repayment threshold, so no repayments are taken. Repayments only begin once your salary exceeds £27,295.
How much student loan do I repay per month on £23,000?
Nothing — you earn below the £27,295 Plan 2 threshold. Your monthly repayment is £0.
Does student loan affect my take-home pay on £23,000?
No — your salary is below the £27,295 threshold, so no student loan is deducted. Your take-home is £20,080/year.
What happens if I earn below the repayment threshold?
If your income is at or below £27,295 (Plan 2 threshold for 2025-26), no student loan repayments are deducted — even if you have an outstanding loan balance. Repayments automatically start and stop based on your earnings each pay period.
How much student loan do I repay in total on £23,000 per year?
Nothing — your salary of £23,000 is below the Plan 2 repayment threshold of £27,295. Annual repayment is £0. Your loan balance continues to accrue interest but no money is deducted from your pay.
What does a £23,000 graduate salary work out to per hour after tax?
A £23,000 graduate salary equates to a gross hourly rate of £11.79 (based on 37.5 hours/week). After tax and NI, your net hourly rate is £10.30. No student loan deduction applies at this salary level.