Pension
UK Pension Tax Relief Calculator (2026/27).
Calculate your pension tax relief for 2026/27. Model basic-rate, higher-rate and additional-rate relief on personal and salary-sacrifice contributions, with Scottish rate support.
Pension contributions attract tax relief at your highest Income Tax rate. A basic-rate taxpayer gets 20% relief, so an £80 net contribution becomes £100 in the pension; higher-rate (40%) and additional-rate (45%) taxpayers can claim a further 20–25% back through Self-Assessment. For 2026/27 the annual allowance is £60,000 (or 100% of your earnings if lower), and unused allowance can often be carried forward up to three years.
Total tax relief
£2,946
Marginal rate 40%
Effective relief rate
29.5%
- Gross contribution
- £10,000
- Basic-rate relief
- £2,000
- Higher-rate relief
- £946
Net cost breakdown
- Gross contribution£10,000.00
- Basic-rate relief (at source)−£2,000.00
- Net payment to pension£8,000.00
- Higher-rate relief (via SA)−£946.00
- Your actual net cost£7,054.00
Remaining annual allowance
£45,000
Monthly net cost £587.83 on £833.33 contributed.
Source: gov.uk pension tax relief. Rates for the 2026/27 tax year.
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Questions
Frequently asked
questions.
HMRC adds 20% basic-rate relief to personal pension contributions. Higher-rate and additional-rate taxpayers claim the difference through Self Assessment.
The pension annual allowance is £60,000 or 100% of your earnings, whichever is lower. Excess contributions above the allowance are taxed.
Carry-forward lets you use unused annual allowance from the three previous tax years, potentially allowing pension contributions above £60,000 in one year.
Salary sacrifice also saves employer and employee National Insurance on the contribution amount, often making it more efficient. Your employer must agree to offer it.
You can contribute up to £3,600 per year gross, which is £2,880 net, and HMRC still adds the 20% basic-rate top-up even with no tax liability.
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