About the UK Pension Tax Relief Calculator
This UK pension tax relief calculator shows how much the government adds to your pension contributions in the 2026/27 tax year and what each contribution really costs you. Enter your income, where you pay tax, how your scheme gives relief and how much you pay in, and it calculates the gross amount going into your pot, the 20% basic-rate relief your provider claims, any extra higher- or additional-rate relief you must claim through Self Assessment, and your effective rate of relief.
Most personal pensions, SIPPs and many workplace schemes use relief at source: you pay 80% and the provider claims the other 20% from HMRC. Higher and additional-rate taxpayers then claim the rest by extending their basic-rate band. Net pay schemes take contributions from pay before tax, so all relief is automatic. Both routes end up with the same total relief for a taxpayer, except that non-taxpayers only get relief under relief at source.
The calculation uses 2026/27 Income Tax bands for England, Wales and Northern Ireland or Scotland, the £100,000 Personal Allowance taper and the rule that relief is limited to 100% of relevant UK earnings (or £3,600 gross if you earn less). It flags contributions above the £60,000 annual allowance but does not model the tapered allowance, carry forward or salary sacrifice National Insurance savings.
With the default inputs, the total tax relief is £3,946.00. Change any value above to recalculate instantly.
How to use the uk pension tax relief calculator
- 1Enter your total taxable income and your relevant UK earnings for 2026/27.
- 2Choose whether you pay tax in Scotland or the rest of the UK.
- 3Pick relief at source or net pay — check your payslip or scheme documents.
- 4Enter what you pay in for the year, plus any employer contributions.
- 5Note the extra relief to claim on your Self Assessment return if you are a higher-rate taxpayer.
Formula and method
Under relief at source you pay a net amount (N) and the provider adds basic-rate relief so that the gross contribution G = N ÷ 0.8. Higher and additional-rate relief is given by extending your basic-rate (and higher-rate) band by G and reducing adjusted net income by G for the Personal Allowance taper; the calculator recalculates your tax both ways and the difference is the extra relief you claim. In Scotland the starter band is not extended, so a 21% taxpayer gets an extra 1%, a 42% taxpayer 22% and so on.
In a net pay arrangement the contribution is deducted from pay before tax, so relief is the tax on your income minus the tax on your income after the contribution. Relief is only available on gross contributions up to 100% of relevant UK earnings, or £3,600 if that is higher. Tax uses 2026/27 bands: Personal Allowance £12,570, basic rate to £50,270 and additional rate above £125,140 in the rest of the UK, and the six Scottish bands.
- N
- Net amount you pay under relief at source
- G
- Gross contribution credited to your pension
- ANI
- Adjusted net income, used for the £100,000 allowance taper
Worked examples
£60,000 earner paying £8,000 into a SIPP
Paying £8,000 net becomes £10,000 gross once the provider adds £2,000. Only £9,730 of income is taxed at 40% (£60,000 − £50,270), so the extra relief claimed through Self Assessment is 20% of £9,730 = £1,946. The £10,000 contribution really costs £6,054.
£110,000 income — escaping the 60% trap
A £10,000 gross contribution cuts adjusted net income to £100,000, restoring £5,000 of Personal Allowance and moving £10,000 out of the 40% band. Tax falls by £4,000 on top of the £2,000 basic relief, so £10,000 in the pension costs just £4,000.
Scottish intermediate/higher-rate taxpayer
In Scotland £50,000 reaches the 42% higher-rate band. Extending the bands by the £5,000 gross contribution moves £5,000 from 42% to 21% and £5,000 from 21% to 20%, giving extra relief of 22% (£1,100) on top of the £1,000 added at source.
Non-earner paying £2,880
Anyone under 75 can get relief on up to £3,600 gross a year even with no earnings. Paying £2,880 into a relief-at-source pension attracts £720 of basic-rate relief.
Frequently asked questions
How does pension tax relief work in the UK?+
Contributions to a registered pension get Income Tax relief at your highest rate. Relief at source schemes add 20% automatically and higher-rate taxpayers claim the rest; net pay schemes deduct contributions before tax so relief is automatic at your marginal rate.
How do I claim higher-rate pension tax relief?+
Enter your gross relief-at-source contributions on your Self Assessment return, or if you do not file one, ask HMRC to adjust your tax code or claim online. You can claim for the previous four tax years if you have missed it.
How much can I pay into my pension and get tax relief?+
You get relief on personal contributions up to 100% of your relevant UK earnings in the tax year, or £3,600 gross if you earn less. Total contributions from all sources above the £60,000 annual allowance may also trigger a tax charge.
What is the 60% tax trap and how do pensions help?+
Between £100,000 and £125,140 you lose £1 of Personal Allowance for every £2 of income, creating an effective 60% rate. Pension contributions reduce adjusted net income, restoring the allowance, so relief on that slice is worth up to 60%.
Do non-taxpayers get pension tax relief?+
Yes, under relief at source: the provider adds 20% on contributions up to £2,880 net (£3,600 gross) a year even if you pay no tax. In a net pay arrangement low earners below the Personal Allowance receive no relief.
Is salary sacrifice better than relief at source?+
Salary sacrifice gives the same Income Tax saving but also saves employee National Insurance (and often the employer passes on its NI saving). It is usually the most efficient route if your employer offers it and your pay stays above the minimum wage.
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.