Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.
On a £70,000 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 £3,500 gross contribution (approximately 5% of salary) under each of the three main methods.
At £70,000, 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 | £3,500 | £3,500 | £3,500 |
| Income tax relief | £1,400 | £1,400 | £1,400 |
| Employee NI saving | — | — | £70 |
| Net cost to you | £2,100 | £2,100 | £2,030 |
Relief at source net cost assumes you claim the extra £700 higher-rate relief via Self Assessment. Without claiming, your net cost is £2,800.
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.