Guide & Calculator

SIPP Tax Relief Calculator 2026/27

Published by the UK Money Calculators editorial team. Last updated for the 2026/27 tax year.

A Self-Invested Personal Pension (SIPP) delivers pension tax relief via the relief at source mechanism. Your provider automatically adds 20% basic-rate relief to every contribution. If you pay tax at 40% or 45%, you reclaim the additional relief through Self Assessment. This guide explains how SIPP tax relief works, the 2026/27 limits, and exactly what you receive at each tax rate — with worked examples.

How SIPP relief at source works

Every pound you contribute to a SIPP is a net contribution. Your provider claims 20% basic-rate tax relief from HMRC and adds it to your pension pot within a few weeks. You do not need to do anything — this top-up is automatic.

You pay £800 net → your SIPP receives £1,000 gross (provider claims £200)
You pay £2,400 net → your SIPP receives £3,000 gross (provider claims £600)
You pay £8,000 net → your SIPP receives £10,000 gross (provider claims £2,000)

The technical way to calculate the gross amount from the net: divide the net contribution by 0.8. So £800 ÷ 0.8 = £1,000 gross. Equivalently, multiply the net by 1.25.

Higher-rate relief: 40% (claim extra 20% via Self Assessment)

If your income is above £50,270 in 2026/27, you pay tax at 40% on earnings in the higher-rate band. You are entitled to 40% total relief on pension contributions — but the provider only claims 20% automatically. You must file a Self Assessment return to claim the additional 20%.

How it works: On your SA100, you enter the gross pension contributions for the year (the amount in the pension, including the provider's top-up). HMRC extends your basic-rate tax band by this amount, meaning less of your income is taxed at 40% and more at 20%. The result is a refund or reduction in your tax bill.

Worked example — higher-rate taxpayer:

Net contribution paid to SIPP: £6,000
Provider claims 20%: £6,000 ÷ 0.8 × 20% = £1,500 → gross in pension: £7,500
Higher-rate SA claim: 20% × £7,500 = £1,500
Total tax relief: £1,500 + £1,500 = £3,000 (40%)
Net cost of £7,500 pension contribution: £6,000 − £1,500 = £4,500

Additional-rate relief: 45% (claim extra 25% via Self Assessment)

If your income exceeds £125,140 in 2026/27, you pay tax at 45%. Total SIPP relief entitlement is 45%. Again, the provider claims 20% — you claim the additional 25% via Self Assessment.

Worked example — additional-rate taxpayer:

Net contribution paid to SIPP: £9,000
Provider claims 20%: gross in pension = £11,250
Additional-rate SA claim: 25% × £11,250 = £2,813
Total tax relief: £2,250 + £2,813 = £5,063 (45%)
Net cost of £11,250 pension contribution: £9,000 − £2,813 = £6,187

SIPP contribution limits 2026/27

Two limits govern how much you can put into a SIPP each year:

Annual allowance: £60,000 — maximum total pension input (your contributions plus any employer contributions) in the tax year
100% of relevant UK earnings — personal contributions attracting tax relief cannot exceed your employment or self-employment income in the same year. Dividends do not count as relevant earnings.

The lower of the two limits applies. Someone earning £35,000 can contribute up to £35,000 gross in personal contributions; the £60,000 annual allowance is the ceiling but not the binding constraint in this case.

If you have flexibly accessed another pension (triggering the Money Purchase Annual Allowance), the MPAA of £10,000 replaces the £60,000 limit for DC contributions including SIPP contributions.

Special rule for low earners: Even if your income is below the personal allowance, you can still contribute up to £2,880 net per year (£3,600 gross) to a SIPP and receive the 20% basic-rate top-up. This rule applies regardless of your tax position.

SIPP vs workplace pension: which gets better tax relief?

For basic-rate taxpayers, the net cost is the same under both systems: you pay £80 per £100 gross in the pension. The difference is in how relief is delivered:

SIPP (relief at source): You pay net, provider claims 20%. Higher-rate taxpayers must file Self Assessment to get full relief.
Workplace pension (net pay): Contribution is deducted before income tax — you automatically get full marginal-rate relief without any SA filing. Higher-rate taxpayers benefit automatically.
Workplace pension (salary sacrifice): You give up salary; employer makes pension contribution. Saves income tax and National Insurance — the cheapest method for employees.

Self-employed people who have no employer cannot use salary sacrifice or net pay arrangement. A SIPP under relief at source is therefore the standard vehicle. The relief is equivalent in value to net pay, but requires Self Assessment to be complete for higher-rate taxpayers.

How to claim SIPP higher-rate relief: step-by-step

Register for Self Assessment (if you are not already) at gov.uk/log-in-file-self-assessment-tax-return
Collect statements from your SIPP provider showing total gross contributions for the tax year (April to April)
Log in to your Self Assessment account and complete the SA100 return for the relevant tax year
Enter the total gross contributions in box 1 of the "Paying into registered pension schemes" section (SA100 page TR4)
HMRC will extend your basic-rate band and recalculate your tax. Any overpayment is refunded to your bank account, typically within 4–6 weeks of submitting the return.

The SA filing deadline is 31 January following the end of the tax year (e.g. 31 January 2028 for 2026/27 contributions). You can claim relief going back up to four tax years if you missed earlier years.

Calculate your SIPP tax relief

Enter your income and SIPP contribution to see the gross amount in the pension, automatic top-up and any additional SA relief to claim.

Open the calculator

Frequently asked questions

How much tax relief do I get on SIPP contributions?

20% basic-rate relief is added automatically by your provider. If you pay income tax at 40% you claim an additional 20% via Self Assessment. At 45% you claim an additional 25%. So total relief is 20%, 40% or 45% depending on your marginal rate.

Do I need to do anything to get 20% SIPP relief?

No. For basic-rate relief, your provider claims it from HMRC automatically. You pay the net contribution (80% of gross) and your pension receives the full gross amount. No Self Assessment is needed for the basic 20%.

What is the maximum I can contribute to a SIPP in 2026/27?

The lesser of £60,000 (annual allowance) or 100% of your relevant UK earnings. If you earn £45,000, the effective cap is £45,000 gross. Carry forward from prior years can allow contributions above £60,000. If you have triggered the MPAA, the DC limit drops to £10,000.

Can I contribute to a SIPP if I have no income?

Yes, up to £2,880 net per year (£3,600 gross), and you still receive the 20% top-up. Above £3,600 gross, you need relevant UK earnings to attract tax relief.

When does HMRC add the 20% top-up?

Your provider claims the basic-rate relief from HMRC monthly or quarterly in arrears. It typically appears in your SIPP account within 6–8 weeks of your contribution. The exact timing varies by provider.

Does the lifetime allowance still apply to SIPPs?

No. The lifetime allowance was abolished from 6 April 2024. There is now a lump sum allowance of £268,275 — the maximum you can take as tax-free cash across all your pensions. Most people will not reach this limit. There is no cap on the total size your SIPP can grow to, though the excess above the lump sum allowance will be taxed as income when taken.

Official sources

Disclaimer: This guide is for general information only and does not constitute financial or tax advice. Pension tax rules are complex and individual circumstances vary. Figures shown are for England, Wales and Northern Ireland unless stated. Consult a qualified financial adviser or HMRC for personalised guidance.