Pension tax relief is one of the most generous benefits in the UK tax system. For every £100 a basic-rate taxpayer puts in, HMRC adds £25 (relief at source). Higher-rate taxpayers can claim a further £25 via Self Assessment, and additional-rate taxpayers a further £31.
Use the calculator below to see exactly what each contribution costs you net of relief. The calculator covers Scottish income tax bands too.
Pension Tax Relief Calculator (2026/27)
How much will HMRC top up your pension?
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£100£60k
Your relief
Tax relief amount
£0
at 0% rate
Net cost to you
£0
in pension after relief
Tax relief is at your marginal rate up to your annual allowance (£60,000 standard). High earners may have a tapered allowance.
How pension tax relief works
Pension contributions get tax relief at your marginal rate, up to your annual allowance (£60,000 for most people in 2026/27). The mechanics depend on the scheme:
- Relief at source: Most personal pensions and SIPPs. You contribute net (e.g. £80) and the provider claims 20% from HMRC, making it £100 in your pension. Higher and additional rate taxpayers claim the rest via Self Assessment.
- Net pay arrangement: Most workplace pensions. The contribution is taken from your gross salary before income tax, so full relief is automatic.
- Salary sacrifice: You exchange salary for an employer pension contribution. Saves both income tax and NI.
Watch your annual allowance: Most people can contribute up to £60,000 (or 100% of UK relevant earnings, whichever is lower). High earners face tapered allowance from £260,000 adjusted income.
Frequently Asked Questions
Tax relief is at your marginal rate. Basic-rate taxpayers get 20%, higher-rate 40%, additional-rate 45%. Scottish rates differ slightly (19% starter, 20% basic, 21% intermediate, 42% higher, 47% top).
Sometimes. If your pension uses relief at source (most personal pensions and SIPPs), you must claim higher-rate relief via Self Assessment. Net pay schemes (most workplace pensions) give full relief automatically.
£60,000 for most people. High earners with adjusted income above £260,000 face a tapered allowance, reducing to £10,000 minimum. Anyone who has flexibly accessed pension may have a £10,000 MPAA.
Yes. You can carry forward unused annual allowance from the previous 3 tax years, provided you were a member of a registered pension scheme in those years.
Usually, yes. Salary sacrifice saves both income tax and NI (8% basic, 2% higher), giving an effective relief of 28% basic-rate or 42% higher-rate, vs 20%/40% for personal contributions.
Often yes if you can afford to. Pension is one of the most tax-efficient wrappers, especially for higher-rate taxpayers. An adviser can help you balance pension vs ISA contributions.