Pension Contribution Tax Relief Calculator

Enter the monthly contribution you want to go into your pension. The calculator shows the net cost to your take-home, basic-rate relief auto-added by the provider, and higher/additional-rate relief you reclaim through self-assessment.

Pennywise Finance Editorial

2026/27 UK pension tax relief: 20% basic-rate (automatic), additional 20% higher-rate and 25% additional-rate reclaimed via self-assessment. Relief-at-source method assumed.

Fact-checked
Reviewed September 2026
About our calculators

Runs entirely in your browser — your numbers are never sent to a server.

Your numbers

Target gross monthly contribution£

The amount that ends up in your pension.

Your income tax band

Result

You pay (take-home drop)—

Basic-rate relief (auto)—

Extra higher/additional rate relief (reclaim)—

Total tax relief—

How pension tax relief works 2026/27

Three mechanisms by scheme type:

Relief-at-source (most SIPPs, some workplace): You pay net. Provider claims 20% back to the pension. Higher/additional rate payers reclaim the extra via self-assessment.
Net-pay arrangement (common workplace): Contribution taken from gross salary before tax — all relief applied upfront, no reclaim needed.
Salary sacrifice: You agree a lower salary; employer pays the difference into pension. Saves NICs on top.

Reclaiming higher-rate relief

If you pay higher or additional rate and your scheme is relief-at-source, HMRC does not know to give you the extra relief automatically. You must either:

File a self-assessment return
Call/write to HMRC with contribution evidence

Many higher-rate taxpayers never claim this. Estimates suggest £1bn+ a year unclaimed.

Annual allowance limits

£60,000/year gross contributions, or 100% of UK earnings, whichever is lower. Carry-forward of unused allowance from the past 3 years is possible if you were a member of a pension scheme in those years.

Frequently asked questions

Does salary sacrifice save more than SIPP contributions?

Yes — salary sacrifice saves NICs (National Insurance) on top of income tax, which SIPP contributions do not. If your employer offers it, usually preferable.

What if I earn under £12,570?

You still get basic-rate relief (20%) added to your contribution — this is a special "non-tax-payer" rule. You can't claim more.

Can I contribute more than £60,000?

Yes if you have unused carry-forward from the past 3 years. Over the limit incurs a tax charge equal to your marginal rate on the excess.

Illustrative calculation. Not personalised financial advice. Rates, bands and allowances for the 2026/27 UK tax year, verified against gov.uk at time of review. For regulated advice consult an FCA-authorised adviser.