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Pension Tax Relief Calculator

Calculate your pension tax relief for 2026/27. Find out how much HMRC adds to your pension contributions at basic, higher, and additional rate.

UK · 2026/27Last reviewed 15 August 2026Reviewed after a tax-year or rule change

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Calculator inputs

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When to use this calculator

  • Before choosing between saving, investing or changing a contribution.
  • When you want to compare cautious, base and optimistic return assumptions.
  • When you need a projection before making a longer-term decision.
  • When you want to see whether starting earlier or contributing more changes the outcome more.

A realistic UK planning example

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

A realistic UK planning example
InputValue
Your Annual Pension Contribution (£)£35,000
Your Income Tax BandBasic rate (20%)
Employer Annual Contribution (£)£250 per month

After entering these figures, review basic rate relief added, additional relief to claim and total tax relief together rather than in isolation. Then rerun the tool with one input adjusted.

How to read your results

Basic Rate Relief Added

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Additional Relief to Claim

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Total Tax Relief

Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.

Your Net Cost

The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.

Total Into Pot

The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.

Method & assumptionsAuthoritative sources

This calculator models pension tax relief under the relief at source system, which is used by the majority of personal and SIPP pension providers in the UK. You enter the gross contribution amount — the total that lands in your pot including the basic rate top-up — and select your marginal income tax band for the 2026/27 tax year. The calculator splits the total relief into two components: the 20% basic rate relief added automatically by your provider, and any additional relief above 20% that higher, additional, or Scottish-rate taxpayers are entitled to claim back via Self Assessment. The effective cost to you is your gross contribution minus total relief, representing what the pension actually costs from your after-tax income.

The tool includes the Scottish intermediate rate (21%) and Scottish higher rate (42%) as these diverge from UK-wide rates and require Scottish taxpayers to claim the marginal difference separately. The annual allowance of £60,000 and the tapered allowance for high earners are not modelled here — if your total contributions exceed £60,000, an annual allowance charge may apply. Employer contributions are included in the total pot calculation only and do not affect the personal relief figures. Always verify your relief entitlement with HMRC or a regulated financial adviser, as individual circumstances may affect the amounts claimable.

Common mistakes

  • !Assuming a constant return without checking a more conservative growth rate.
  • !Forgetting ongoing contributions, fees or tax wrappers where relevant.
  • !Focusing only on the final balance instead of the path required to reach it.
  • !Ignoring the drag of charges over a long period.

What to do next

  • Test a cautious, expected and optimistic growth rate.
  • Compare this result with related savings or retirement tools before committing more money.
  • Consider charges and any tax wrapper that applies.
  • If the projected balance falls short, increase the contribution until the result meets your goal.

Frequently asked

When you contribute to a pension, HMRC adds tax relief at your marginal rate. For basic rate taxpayers, relief is added automatically at source — for every £80 you pay in, HMRC tops up £20 to make £100. Higher and additional rate taxpayers receive the extra relief above 20% by claiming through Self Assessment or by asking HMRC to adjust their tax code, effectively reducing the net cost of their contribution further.

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