See how much tax relief you'll get on a pension contribution and the net cost to you. The calculator applies the relevant marginal rate (20%, 40%, 45%, or 60% in the £100k–£125,140 PA-taper zone) and flags any contribution that exceeds your annual allowance.
Tax relief is granted at your marginal Income Tax rate. The standard annual allowance is £60,000 (since April 2023). For high earners, the allowance tapers by £1 for every £2 of ‘adjusted income’ above £260,000, down to a minimum of £10,000. The calculator shows the relief value, your net cost (contribution minus relief), and any portion of the contribution that exceeds the allowance (which won’t get relief and may incur the annual allowance charge).
In this zone the Personal Allowance tapers (losing £1 per £2 of income) on top of the 40% higher-rate band. The combined effective marginal Income Tax rate is 60%. Pension contributions can restore the PA — making this the single most tax-efficient salary band for pension contributions in the UK.
Three mechanisms: (1) Relief at source — your provider claims back basic-rate (20%); higher/additional rate is claimed via Self Assessment. (2) Net pay arrangement — contribution comes off gross salary before tax, full relief applied immediately. (3) Salary sacrifice — contribution comes from pre-tax salary, also saving NI.
If you didn't use your full annual allowance in any of the previous 3 tax years, you can carry forward the unused amount (provided you were a member of a registered pension scheme during those years). Useful for big one-off contributions. Not modelled here — calculate carry forward separately and adjust the allowance.
Abolished from 6 April 2024. Replaced with two new allowances: Lump Sum Allowance (£268,275 max tax-free lump sum) and Lump Sum and Death Benefit Allowance (£1,073,100 across all pensions). The annual allowance still applies to contributions in working life.
Last updated: May 2026 · Rates sourced from HMRC
