Pension Tax Relief Calculator United Kingdom
This pension tax relief calculator shows the 2026/27 relief on a UK pension contribution: basic rate relief, higher rate relief to reclaim and your net cost.
What it does
The Pension Tax Relief Calculator shows the tax relief you get on a pension contribution for 2026/27 — the 20% added at source plus any higher- or additional-rate relief you can claim back — and the real net cost to you.
Data sources & parameters
The figures below drive this calculator. We keep them aligned with the latest official guidance, and each result recalculates automatically whenever a value changes.
| Parameter | Value | Source | Last updated |
|---|---|---|---|
| Pension annual allowance | 60,000 | gov.uk | Effective 2026-04-06Fixed in statute, no change announced for 2027/28; row now open-ended. Source: gov.uk pension tax; audit 2026-09-23 |
| Personal allowance | 12,570 | gov.uk | Effective 2026-04-06 |
| Personal allowance taper start | 100,000 | gov.uk | Effective 2026-04-06 |
| Income tax basic-rate limit | 50,270 | gov.uk | Effective 2026-04-06Label corrected. The stored value was right; the label named a different figure and is shown to readers in the data-sources box. |
| Income tax additional-rate threshold | 125,140 | gov.uk | Effective 2026-04-06Label corrected. The stored value was right; the label named a different figure and is shown to readers in the data-sources box. |
| Income tax basic rate | 0.2 | gov.uk | Effective 2026-04-06 |
| Income tax higher rate | 0.4 | gov.uk | Effective 2026-04-06 |
| Income tax additional rate | 0.45 | gov.uk | Effective 2026-04-06 |
We always strive to use the latest data for every variable so our results and reports are as accurate as possible. Even so, errors are possible — you should not rely on this tool or its report alone, and we accept no liability for any decision made based on it.
The formula
Total relief = Income Tax on your income − Income Tax on (income − gross contribution); net cost = contribution − relief
How it works
It treats your gross contribution as coming off the top of your taxable income, so the total relief is your income tax with the contribution minus without it — which also captures the personal-allowance restoration for £100k+ earners.
Where it is used
- Seeing the true cost of a pension contribution
- Working out higher-rate relief to reclaim
- Spotting the 60% relief sweet spot around £100k
Worked example
A £10,000.00 pension contribution on £60,000.00 of income gets … of relief — … at source and … reclaimed — so it costs you just … net.
Pension saving is tax-efficient because the government tops up what you pay in. The relief depends on your income, though, and higher earners have to claim part of it rather than receiving it automatically. This calculator shows how much relief a contribution earns for 2026/27 and what it costs you once the relief is counted.
How pension tax relief works
Money paid into a pension is free of Income Tax. In a personal pension using relief at source, you pay in from taxed income and the provider adds 20% basic rate relief: pay in £80 and £100 lands in your pension. For a basic rate taxpayer that is all. Higher and additional rate taxpayers are entitled to a further 20% or 25%, which they claim through Self Assessment or by asking HMRC to adjust their tax code. The calculator shows the relief added at source and the extra to reclaim separately.
Why the effective rate can beat your tax band
A gross contribution effectively comes off the top of your taxable income, so relief is given at your highest rates first. A higher rate taxpayer gets 40% relief on the part that would have been taxed at 40% and 20% on the rest. Between £100,000 and £125,140, where the personal allowance is withdrawn at £1 for every £2, a contribution saves 40% tax and restores lost allowance, so the relief can reach 60%. That is why the effective relief rate shown can be higher than your headline band.
The annual allowance
The annual allowance limits how much you can pay in with tax relief each year: £60,000, or 100% of your earnings if lower, counting your contributions, your employer’s and the basic rate relief. Very high earners have a tapered allowance, reduced by £1 for every £2 of adjusted income over £260,000 down to £10,000, and anyone who has flexibly accessed a pension is limited to the £10,000 Money Purchase Annual Allowance. Unused allowance from the previous three tax years can be carried forward. The calculator flags any contribution above £60,000 so you can check these before relying on full relief.
A worked example
A higher rate taxpayer earning £60,000 pays £10,000 gross into a pension. £2,000 of basic rate relief is added at source, so the pension gets £10,000 for £8,000 of their money. Because £9,730 of their income was in the 40% band, they can reclaim a further £1,946, so total relief is £3,946 and the net cost £6,054. A basic rate taxpayer paying in £5,000 gets £1,000 of relief and has nothing to reclaim. Someone on £130,000 paying in £20,000 gets £11,271 of relief, an effective rate of about 56%, because part of the contribution comes off income taxed at 45% and the rest restores personal allowance in the 60% band.
How to use the calculator
Enter your gross annual contribution (the total that ends up in the pension, including the basic rate top-up) and your annual income before tax. The result shows the basic rate relief added at source, the higher or additional rate relief to reclaim, the total relief, your net cost, the amount in your pension, your effective relief rate and any amount above the annual allowance. Use it to size a contribution, see what to claim on your tax return, or target the 60% band deliberately.
Assumptions and limitations
This is a planning estimate, not advice. It uses the 2026/27 Income Tax bands and the £60,000 annual allowance, and measures relief as the reduction in Income Tax from the contribution. It assumes you have relevant UK earnings at least equal to the contribution. It does not model the tapered annual allowance, the Money Purchase Annual Allowance, carry-forward, employer contributions, salary sacrifice (which also saves National Insurance), Scottish Income Tax rates or the annual allowance charge. All rates and limits are stored as parameters sourced from HMRC and reviewed each tax year.
About This Pension Tax Relief Calculator
Use this pension tax relief calculator to get an instant, accurate estimate. The figures follow official GOV.UK guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.
Tax year 2026
Frequently asked questions
How is pension tax relief calculated?
How much tax relief do higher-rate taxpayers get?
What is the pension annual allowance for 2026/27?
Why can the effective relief rate be higher than my tax band?
What does the calculator not cover?
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