Pension Contribution Calculator 2026/27
Updated for the 2026/27tax year · Last updated
Enter your income and pension contribution to see the tax relief you receive and the true net cost to you. A £5,000 contribution costs a higher-rate taxpayer significantly less than a basic-rate taxpayer once tax relief is applied.
Tax saving
£1,000
Net cost
£4,000
| Gross contribution | £5,000 |
| Tax relief at 20% | £1,000 |
| Net cost to you | £4,000 |
Annual allowance: £60,000 (2026/27)
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How this calculator works
The calculator compares income tax with and without the pension contribution. The difference is the tax saving — the amount the government effectively contributes on your behalf. Net cost = gross contribution − tax saving.
The marginal relief rate depends on which tax band your contribution falls into. A contribution that spans the basic/higher boundary gets blended relief.
Frequently asked questions
With relief at source (personal pensions, SIPPs), you contribute net of basic-rate tax — HMRC adds 20% back automatically. If you pay higher or additional rate tax, you claim the extra relief through Self Assessment. With net pay arrangements (most workplace pensions), contributions are taken before tax is calculated, so you get full relief immediately.
The annual allowance is £60,000 — the maximum total pension input (employer + employee) that benefits from tax relief in a tax year. Increased from £40,000 in April 2023. High earners may have a tapered annual allowance; consult a pension adviser if your adjusted income exceeds £260,000.
Yes — you can carry forward unused annual allowance from the previous three tax years, as long as you were a member of a registered pension scheme in those years. This allows larger one-off contributions if you have spare capacity.
A Self-Invested Personal Pension (SIPP) is a type of personal pension where you choose your own investments. SIPPs use relief at source, so you contribute net and HMRC adds basic-rate relief. Higher rate taxpayers claim additional relief via Self Assessment.