Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.
On a £100,000 salary, your pension tax relief depends on your marginal income tax rate and how your employer's scheme works. Below we show the relief and net cost for a £5,000 gross contribution (approximately 5% of salary) under each of the three main methods.
At £100,000, your marginal income tax rate is 40% (England, Wales and NI, 2026/27). You pay 40% income tax on earnings above £50,270. For relief at source pensions, you must claim the extra 20% relief (beyond the provider's automatic 20%) via Self Assessment.
| Item | Relief at Source | Net Pay | Salary Sacrifice |
|---|---|---|---|
| Gross into pension | £5,000 | £5,000 | £5,000 |
| Income tax relief | £2,000 | £2,000 | £2,000 |
| Employee NI saving | — | — | £100 |
| Net cost to you | £3,000 | £3,000 | £2,900 |
Relief at source net cost assumes you claim the extra £1,000 higher-rate relief via Self Assessment. Without claiming, your net cost is £4,000.
Disclaimer: Estimates only — 2026/27 England, Wales and NI rates. Not financial advice. Actual relief depends on total income, contribution method and any other reliefs.