Power Calculators

🏦 UK Pension Tax Relief Calculator 2026/27

Every £100 in your pension can cost you as little as £58. See your figure.

By the Power Calculators team Updated

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For relief at source, enter what you pay (the provider adds 20%).

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Fill in the details and click Calculate to see your results.

Formula at a glance

UK Pension Tax Relief Calculator: Relief at source — gross = you pay ÷ 0.8. Example: Higher-rate taxpayer, £4,000 into a SIPP → Goes into your pension: £5,000.00
How the UK Pension Tax Relief Calculator works: Relief at source — gross = you pay ÷ 0.8

📱 Also in our Android apps

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  • Financial CalculatorEMI, SIP, PPF, NPS, post office schemes and government-employee calculatorsGet it on Google Play
  • Govt Employee CalculatorSalary, DA, pension and income tax for government employeesGet it on Google Play

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📘 About the UK Pension Tax Relief Calculator 2026/27

Pension contributions get tax relief at your highest rate of income tax. With relief at source you pay 80% and your provider claims the 20% from HMRC; higher-rate taxpayers claim another 20% (and additional-rate 25%) through Self Assessment. With net pay, contributions come off your pay before tax.

Salary sacrifice also saves National Insurance (8% or 2%), so it is the cheapest way to pay in. You can get relief on contributions up to 100% of earnings or the £60,000 annual allowance.

🧮 Formula

Relief at source
gross = you pay ÷ 0.8
Real cost
drop in take-home pay

✏️ Worked examples

Higher-rate taxpayer, £4,000 into a SIPP

You enter
Salary before tax60,000 £
Your yearly contribution4,000 £
How you pay inRelief at source (personal / SIPP)
Where you liveEngland, Wales or Northern Ireland
You get
Goes into your pension£5,000.00
Real cost to you (less take-home pay)£3,000.00
Total tax relief£2,000.00
Relief as % of contribution40%
Added by your provider (basic rate)£1,000.00
Extra to claim through Self Assessment / HMRC£1,000.00

£3,000.00.

£5,000 salary sacrifice on £60,000

You enter
Salary before tax60,000 £
Your yearly contribution5,000 £
How you pay inSalary sacrifice
Where you liveEngland, Wales or Northern Ireland
You get
Goes into your pension£5,000.00
Real cost to you (less take-home pay)£2,900.00
Total tax and NI relief£2,100.00
Relief as % of contribution42%

£2,900.00.

🧭 How to use this calculator

What you enter

  • Salary before tax (£)
  • Your yearly contribution (£)For relief at source, enter what you pay (the provider adds 20%).
  • How you pay in
  • Where you live

What you get

  • Goes into your pension
  • Real cost to you (less take-home pay)
  • Total tax relief
  • Relief as % of contribution
  • Added by your provider (basic rate)
  • Extra to claim through Self Assessment / HMRC

❓ Frequently asked questions

How much tax relief do I get on pension contributions?

20% for basic-rate taxpayers, 40% for higher-rate and 45% for additional-rate (21%, 42%, 45% or 48% in Scotland).

How do I claim higher-rate pension tax relief?

Through your Self Assessment tax return, or by writing to HMRC if you do not file one. HMRC will adjust your tax code or send a refund.

Is salary sacrifice better than relief at source?

Usually yes for employees, because you also save National Insurance and your employer may add its NI saving.

What is the pension annual allowance for 2026/27?

£60,000, or 100% of your earnings if lower. It tapers down to £10,000 for adjusted income over £260,000.