About the UK Pension Annual Allowance Calculator
This UK pension annual allowance calculator checks whether your pension savings this tax year go over the annual allowance — the most that can be paid into your pensions each year (by you, your employer or anyone else) with tax relief before a tax charge applies. It applies the taper for high earners, adds unused allowance carried forward from the previous three tax years, and estimates the annual allowance charge on any excess.
It is meant for higher earners, company directors making large employer contributions, members of defined benefit schemes with a big pension increase, and anyone who has started drawing flexibly from a pension and is now limited by the money purchase annual allowance. Enter your threshold income, adjusted income, total pension savings and the unused allowance from each of the last three years.
Figures are for the 2026/27 tax year (6 April 2026 to 5 April 2027) and match HMRC guidance: a standard annual allowance of £60,000, tapered by £1 for every £2 of adjusted income above £260,000 when threshold income is also over £200,000, down to a minimum of £10,000; and a £10,000 money purchase annual allowance (MPAA). Carry forward is only available if you were a member of a registered pension scheme in the earlier years, and the charge is estimated at the single tax rate you choose.
With the default inputs, the estimated annual allowance charge is £3,150.00. Change any value above to recalculate instantly.
How to use the uk pension annual allowance calculator
- 1Add up all pension savings for the tax year — your gross contributions plus employer contributions.
- 2Work out your threshold income and adjusted income (see HMRC’s guidance or your payslips and P60).
- 3Enter any unused allowance from 2023/24, 2024/25 and 2025/26.
- 4Turn on the MPAA toggle if you have flexibly accessed a pension.
- 5Choose your marginal tax rate and review the allowance, excess and estimated charge.
Formula and method
Everyone starts with a £60,000 annual allowance. If your threshold income is over £200,000 and your adjusted income is over £260,000, the allowance falls by £1 for every £2 of adjusted income above £260,000, but never below £10,000. Threshold income broadly excludes employer contributions; adjusted income includes them, which is why large employer contributions can trigger the taper.
You must use the current year’s allowance first, then unused allowance from the earliest of the previous three years. Any savings above the total are the excess, which HMRC adds to your taxable income and taxes at your marginal rate — the calculator multiplies by the single rate you choose. If you have triggered the money purchase annual allowance, defined contribution savings over £10,000 are chargeable and carry forward cannot cover them; the charge is based on whichever test gives the larger excess.
- Threshold income
- Net income less your own relief-at-source contributions
- Adjusted income
- Net income plus all pension contributions including employer’s
- Carry forward
- Unused allowance from the previous three tax years
Worked examples
Tapered allowance with a little carry forward
Adjusted income of £300,000 is £40,000 over £260,000, so the allowance is tapered by £20,000 to £40,000. With £8,000 carried forward, £48,000 is available; £55,000 of savings is £7,000 over, costing about £3,150 at 45%.
No taper, carry forward covers the excess
Threshold income is under £200,000, so the full £60,000 applies. The extra £20,000 of savings is covered by carry forward — the £10,000 from 2023/24 first, then £10,000 from 2024/25 — leaving £5,000 of headroom.
Very high earner at the £10,000 minimum
Adjusted income is £140,000 over the limit, which would cut £70,000, but the allowance cannot fall below £10,000. Savings of £30,000 exceed it by £20,000, a charge of about £9,000 at 45%.
Money purchase annual allowance triggered
After flexibly accessing a pension, money purchase savings are limited to £10,000 and carry forward cannot be used. £25,000 of contributions is £15,000 over, about £6,000 of tax at 40%.
Frequently asked questions
What is the pension annual allowance for 2026/27?+
The standard annual allowance is £60,000 for the 2026/27 tax year. It may be lower if you have a high income (the tapered annual allowance) or if you have flexibly accessed a pension (the £10,000 money purchase annual allowance).
How does the tapered annual allowance work?+
If your threshold income is over £200,000 and your adjusted income is over £260,000, your allowance is reduced by £1 for every £2 of adjusted income over £260,000, down to a minimum of £10,000, which is reached at adjusted income of £360,000.
How does carry forward work?+
You can carry forward unused annual allowance from the previous three tax years, provided you were a member of a registered pension scheme in those years. You must use the current year’s allowance first, then the earliest year’s unused allowance.
Can I carry forward if the MPAA applies?+
Not against money purchase savings. Once the money purchase annual allowance is triggered, contributions to defined contribution pensions over £10,000 are chargeable regardless of carry forward, although carry forward may still help with defined benefit savings.
How is the annual allowance charge paid?+
The excess is added to your taxable income and reported on a Self Assessment tax return. If the charge is over £2,000 and your savings in one scheme exceeded the standard allowance, you can ask that scheme to pay it ("scheme pays") in exchange for lower benefits.
Do employer contributions count toward the annual allowance?+
Yes. The annual allowance covers all contributions to defined contribution schemes, by you, your employer or anyone else, plus any increase in the value of defined benefit benefits during the tax year.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.