Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.
On a £55,000 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 £2,800 gross contribution (approximately 5% of salary) under each of the three main methods.
At £55,000, 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 | £2,800 | £2,800 | £2,800 |
| Income tax relief | £1,120 | £1,120 | £1,120 |
| Employee NI saving | — | — | £56 |
| Net cost to you | £1,680 | £1,680 | £1,624 |
Relief at source net cost assumes you claim the extra £560 higher-rate relief via Self Assessment. Without claiming, your net cost is £2,240.
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.