According to the invention, there is provided a novel soybean variety designated XB40Y07. This invention thus relates to the seeds of soybean variety XB40Y07, to the plants of soybean XB40Y07 to plant parts of soybean variety XB40Y07 and to methods for producing a soybean plant produced by crossing plants of the soybean variety XB40Y07 with another soybean plant, using XB40Y07 as either the male or the female parent.