£60,000 Salary Breakdown (2025/2026)

Higher Rate Tax Explained

With a salary of £60,000, you are earning £9,730 above the Higher Rate tax threshold (£50,270). This portion of your income is taxed at 40%, while the amount between £12,570 and £50,270 is taxed at 20%.

Child Benefit Warning (HICBC)

Important: £60,000 is the threshold where the High Income Child Benefit Charge (HICBC) begins to apply. If you or your partner claim Child Benefit and earn over £60,000, you may need to pay back 1% of the benefit for every £200 earned above this limit (via Self Assessment).

Tax & NI Breakdown

Assuming a standard 1257L tax code:

  • Income Tax: approx. £11,432 per year.
  • National Insurance: approx. £3,210 per year. (NI drops to 2% on earnings above £50,270).

Student Loan Repayments on £60k

Repayments are calculated as a percentage of earnings above the threshold:

  • Plan 1: ~£3,050/year (~£254/month).
  • Plan 2: ~£2,830/year (~£236/month).
  • Postgraduate: ~£2,340/year (~£195/month).