Skip to content
Tax CalculatorUK
Calculate

Pension Tax Relief Calculator

Pension contributions cost you less than they add to your pot, because they come out before tax (and sometimes before NI). Change the method and percentage to see the real cost to your take-home pay.

Tax year 2026/27 · Estimates, not personal tax advice

£
Pay frequency
%
Student loans
£

e.g. EV or cycle scheme

£

Taxable value

£

Taxed, no NI

£

After tax

Your results

Enter your salary to see take-home pay by year, month, week, day and hour.

Using 2026/27 rates (6 April 2026 to 5 April 2027). Nothing you enter is stored or sent anywhere.

Rates and rules used

Tax year 2026/27

Default year 2026/27 (6 April to 5 April). 2025/26 and 2024/25 figures are kept for comparison where the calculator offers a year choice.

Independent site, not affiliated with HMRC. Always check GOV.UK for the latest figures.

How this calculation works

  1. 01Start with your gross income and convert it to an annual figure.
  2. 02Take off salary sacrifice and net pay pension contributions.
  3. 03Apply your Personal Allowance, tapered above £100,000 or set by your tax code.
  4. 04Calculate Income Tax band by band using rates for your region.
  5. 05Calculate employee National Insurance on earnings after salary sacrifice.
  6. 06Deduct relief at source pension contributions at 80% of the gross amount.
  7. 07Apply student and postgraduate loan repayments above each threshold.
  8. 08Subtract everything to reach estimated net pay, then split it by period.

Real payroll can differ because tax and NI are worked out per pay period, and your tax code may include adjustments HMRC hasn't told you about. See our methodology.

Three ways relief is given

Net pay: your employer takes the contribution before calculating tax, so relief is instant at your top rate. Relief at source: you pay 80% and the provider claims the basic-rate 20% from HMRC; higher-rate taxpayers claim the rest through Self Assessment. Salary sacrifice: you agree to a lower salary, saving both tax and NI.

The calculator shows how much the contribution actually reduces your net pay compared with contributing nothing.

Understanding your pension tax calculator result

The result compares the amount reaching the pension with the reduction in take-home pay. Those figures differ because tax relief, and sometimes National Insurance savings, meet part of the contribution.

Comparing pension methods

Scenario: Enter the same salary and gross contribution under net pay, relief at source and salary sacrifice in turn.

How to use the result: Compare the take-home figures and pension amounts. Ask the employer which method the scheme actually uses before relying on the most favourable result.

Details to check before relying on the estimate

  • Use the gross contribution when comparing methods.
  • Higher-rate relief may need to be claimed for relief-at-source payments.
  • Annual and tapered allowance rules are not fully modelled for every circumstance.

Putting the estimate into perspective

Compare the amount entering the pension with the cash you give up, then consider access to the money separately. A tax-efficient contribution may still be unsuitable for an immediate spending need.

Frequently asked questions

Do pension contributions reduce taxable income?

Yes. Net pay and salary sacrifice contributions reduce taxable pay directly. Relief at source contributions extend your basic rate band instead, which has the same overall effect once any higher-rate relief is claimed.

Check it on GOV.UK: Tax on your private pension (opens GOV.UK in a new tab) · Income Tax rates and allowances (opens GOV.UK in a new tab)

What is the pension annual allowance?

£60,000 in 2026/27, or 100% of your earnings if lower. It's tapered for very high earners.

Check it on GOV.UK: Tax on your private pension (opens GOV.UK in a new tab)

What is the difference between relief at source and net pay?

With relief at source, contributions come from pay after tax and your provider claims basic-rate relief. With net pay, contributions come out before Income Tax, so you receive relief straight away.

Check it on GOV.UK: Income Tax rates and allowances (opens GOV.UK in a new tab)

Is there a limit to how much I can pay into a pension?

There are annual limits on tax-relieved contributions that depend on your earnings and other pension savings. Check GOV.UK before contributing a large amount.

Check it on GOV.UK: Tax on your private pension (opens GOV.UK in a new tab)

Related calculators

Related guides

  • Pension Tax Relief — How pension tax relief works in the UK, the difference between net pay and relief at source, and how higher-rate taxpayers claim extra relief.
  • Salary Sacrifice Explained — How salary sacrifice works for pensions, electric cars and cycle schemes, how much tax and NI you save, and the downsides to check.