Updated for 2026/27

Pension Tax Relief Calculator UK 2026/27

Enter your income and pension contribution to estimate tax relief under relief at source, net pay or salary sacrifice — and see the true net cost of pension saving.

Calculate relief
£60,000 annual allowance 20% basic relief 40%/45% higher relief Relief at source / net pay / salary sacrifice Free to use

Pension Tax Relief Calculator

Adjust figures — results update instantly.

Tax year 2026/27
£2,000 total relief estimate £250/month net cost
Total relief
£2,000
Net cost
£3,000
Marginal rate
40%
Basic rate relief (20%) £1,000
Higher rate relief £1,000
Employee NI saving £0
Net cost £3,000
How it works

Three steps to estimate your pension relief

01

Enter income and contribution

Add your gross annual income and the gross pension contribution amount you want to model.

02

Choose contribution method

Select relief at source, net pay arrangement or salary sacrifice to see how relief is delivered.

03

See relief breakdown

See basic rate relief, higher rate extra relief, any NI savings, effective net cost and monthly cost of your pension contribution.

Worked example

£60,000 income, £5,000 gross contribution, relief at source

Gross income: £60,000. Gross pension contribution: £5,000. Method: relief at source. This taxpayer is a higher-rate taxpayer (income above £50,270).

Basic rate relief: £1,000 (20% of £5,000 — provider claims automatically from HMRC). Extra higher-rate relief: £1,000 (additional 20%, claimed via Self Assessment). Total relief: £2,000.

Net cost: £5,000 − £2,000 = £3,000. Monthly net cost: £250. Every £5,000 gross pension contribution costs a 40% taxpayer just £3,000 in real terms.

Guides

Pension tax relief guides 2026/27

In-depth guides to UK pension tax relief, annual allowance, carry forward and contribution strategies.

Claiming relief

How to Claim Higher Rate Pension Tax Relief

How to claim extra pension tax relief through Self Assessment if you're a higher-rate taxpayer.

Self Assessment

Pension Tax Relief and Self Assessment

Reporting pension contributions on Self Assessment to claim higher and additional rate relief.

High earners

Pension Relief Over £100,000 Income

How pension contributions can restore the personal allowance if income exceeds £100,000.

Annual allowance

Tapered Annual Allowance

How the annual allowance tapers from £60,000 to £10,000 for very high earners.

MPAA

Money Purchase Annual Allowance (MPAA)

The £10,000 MPAA that applies after flexibly accessing a defined contribution pension.

Contributions

Gross vs Net Pension Contributions

The difference between what you pay and what your pension receives — gross vs net explained.

Carry forward

Pension Carry Forward

Using unused annual allowance from previous three years to make larger pension contributions.

Net pay

Net Pay Arrangement and Low Earners

Why the net pay arrangement can leave low earners worse off — and what HMRC does about it.

Contributions

Pension Contribution Net Cost

What a pension contribution really costs you after tax relief is applied.

Self-employed

Pension Tax Relief for the Self-Employed

Pension tax relief for sole traders and self-employed people via SIPP contributions.

View all guides →
Calculators

Pension tax relief calculators

Free tools to estimate pension relief, higher-rate savings and annual allowance for 2026/27.

Pension Tax Relief Calculator

Estimate your total pension relief under relief at source, net pay or salary sacrifice.

Calculator

Higher Rate Pension Relief Calculator

Estimate the extra pension tax relief available to higher and additional rate taxpayers.

Calculator

Relief at Source Calculator

See your provider's 20% top-up and calculate any extra relief to claim via Self Assessment.

Calculator

Salary Sacrifice Pension Calculator

Estimate income tax and NI savings from a pension salary sacrifice arrangement.

Calculator

Annual Allowance Checker

Check whether your pension contributions are within the £60,000 annual allowance for 2026/27.

Calculator
Calculator suite

Three more tools in the same network

PensionTaxReliefCalculator is part of the UK Money Calculators network — free, independent tools for estimating UK tax and finances.

AfterTaxSalary.co.uk
UK take-home pay calculator
PAYE income tax, National Insurance, student loan and pension deductions — estimate your net salary after tax.
Visit AfterTaxSalary.co.uk →
UKSalarySacrificeCalculator.co.uk
Salary sacrifice calculator
See how salary sacrifice pension contributions save income tax and employee NI — including employer NI saving.
Visit UKSalarySacrificeCalculator.co.uk →
EmployerCalculator.co.uk
Employer NI & cost calculator
Employer NI at 15%, auto-enrolment pension and total cost to employ for any UK salary in 2026/27.
Visit EmployerCalculator.co.uk →
FAQ

Pension tax relief — common questions

What is pension tax relief?
Pension tax relief is a government incentive that reduces the cost of saving into a pension. For every £80 a basic-rate taxpayer pays into a pension, the government adds £20, making the gross contribution £100. Higher-rate taxpayers can claim an additional 20% back through Self Assessment, and additional-rate taxpayers an extra 25%.
What is relief at source?
Relief at source is the most common method for personal pensions and SIPPs. You pay the net amount (80% of the gross contribution) and your provider automatically claims basic-rate relief (20%) from HMRC. If you are a higher or additional-rate taxpayer, you claim the extra relief via your Self Assessment tax return.
What is a net pay arrangement?
Net pay arrangements are used by many workplace pension schemes. Your contribution is deducted from your salary before income tax is calculated, so you receive full tax relief automatically at your marginal rate without needing to make a Self Assessment claim. This means basic-rate taxpayers in net pay schemes pay the same amount as higher-rate taxpayers in percentage terms.
How does salary sacrifice differ from pension tax relief?
Salary sacrifice is not technically pension tax relief — it is a contractual arrangement where you give up part of your salary in exchange for employer pension contributions. Because your salary is reduced, you pay less income tax and National Insurance on the sacrificed amount. The employer also saves employer NI, and some pass this saving on to your pension.
What is the annual allowance?
The annual allowance for 2026/27 is £60,000 — the maximum you can contribute to pensions each year while still receiving tax relief. This covers all contributions including those from your employer. If you have already flexibly accessed your pension, the Money Purchase Annual Allowance of £10,000 may apply instead.
Do Scottish taxpayers get different pension relief?
Yes. Scottish taxpayers pay different income tax rates from the rest of the UK — there are six bands ranging from 19% (starter rate) up to 48% (top rate). For relief at source, providers still claim 20% basic rate relief from HMRC regardless of Scottish rates. Scottish taxpayers who pay higher rates must claim the additional relief through Self Assessment. The calculator handles Scottish rates.
Methodology

How we calculate pension tax relief

We determine your marginal income tax rate based on gross income and region (England/Wales/NI or Scotland). For relief at source, basic rate relief (20%) is automatic and higher-rate taxpayers reclaim extra via Self Assessment. For net pay, the full marginal rate applies automatically. For salary sacrifice, income tax and employee NI savings are both shown.

This calculator does not cover carry forward, tapered annual allowance, defined benefit pensions, or complex cross-border situations. It is a simplified estimate for standard individual contributions.

Read full methodology →

Published by the UK Money Calculators editorial team · Last updated for the 2026/27 tax year · Calculations are estimates only and are not financial or tax advice. · GOV.UK pension tax relief · Annual allowance