Pension tax relief calculator: higher-rate relief

Estimate the tax relief on your workplace pension and any extra relief to claim from HMRC. Enter your salary, contribution and pension method to compare relief at source, net pay or salary sacrifice.

Example: Pension tax relief a year

£1,200.00

£3,000.00 goes into your pension and your take-home pay falls by £1,800.00 after the estimated extra relief
Your provider adds £600.00; estimated extra relief from HMRC: £600.00

Your details

Salary a year before tax

Where you pay income tax England Wales Northern Ireland Scotland

How your pension is taken Relief at source Net pay arrangement Salary sacrifice Relief at source: your provider adds relief. Net pay: taken before Income Tax. Salary sacrifice: you give up pay for an employer pension contribution. Ask your employer which applies.

Gross pension contribution, percent of salary % The amount going into your pension, including provider relief for relief at source. It may differ from the amount taken from your pay.

CalculateReset

Your pension tax relief

Pay or deduction	Amount a year
Take-home without pension	£45,361.00
Take-home with pension	£43,561.00
Pension added	£3,000.00
Cost to you	£1,800.00
Tax relief	£1,200.00
Provider top-up	£600.00
Estimated extra relief from HMRC	£600.00

How this was worked out

1. Salary a year before tax: £60,000.00
2. Gross pension contribution: 5% of your salary = £3,000.00, including any provider relief
3. Take-home without pension: £45,361.00
4. Take-home with pension: £43,561.00
5. Cost to you: £45,361.00 − £43,561.00 = £1,800.00
6. Tax relief: £3,000.00 − £1,800.00 = £1,200.00
7. Your provider adds: £600.00
8. Estimated extra relief from HMRC: £1,200.00 − £600.00 = £600.00
9. Each £1 in your pension costs you: £1,800.00 ÷ £3,000.00 = 60p

Higher-rate relief at source: a worked example

An employee in England earning £60,000.00 makes a contribution that puts £3,000.00 into the pension through relief at source. The take-home cost is £1,800.00 after an estimated £600.00 is claimed from HMRC. This example assumes the standard tax code and no other income.

With net pay or salary sacrifice, relief is reflected in payroll instead. The calculator separates relief already received from any estimated claim. Check HMRC's claim guidance for your pension method.

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What the calculator assumes

• You are an employee paid through PAYE with the standard tax code, and your salary is your only income.
• The percentage is the gross contribution into your pension, based on your whole salary. It includes provider relief for relief at source. Other employer contributions are excluded.
• You have no student loan and your contributions stay within your annual allowance. Relief-at-source costs assume you obtain any estimated extra relief from HMRC.
• The rates are for the 2026/27 tax year.

How pension tax relief works

Pension tax relief reduces the cost of a contribution. The relief depends on your taxable income and how your scheme takes the money.

With relief at source, your contribution comes out of your pay after tax, and the pension provider adds basic-rate relief to your pension. You can claim any further relief the calculator estimates through a Self Assessment tax return or by contacting HMRC.

With a net pay arrangement, your employer takes the contribution from your pay before Income Tax, so any Income Tax saving is reflected in payroll. If you earn below your Personal Allowance, this calculator shows no immediate tax saving. HMRC may make a separate annual payment to eligible low earners after the tax year ends. HMRC checks eligibility and contacts eligible members; you do not apply. This later payment is excluded from the estimate. See HMRC's guidance on net pay payments.

With salary sacrifice, you agree to a lower salary and your employer pays the difference into your pension. This can reduce Income Tax and National Insurance. The calculator shows these savings separately.

Relief you might be missing

With relief at source, taxpayers who pay above the basic rate can claim extra relief from HMRC. In Scotland, this includes taxpayers who pay some income tax at the intermediate rate. For Scottish taxpayers, the calculator extends the basic-rate band and every band above it by the gross contribution, while leaving the starter-rate band unchanged.

The salary sacrifice calculator compares a sacrifice with your current pay, and the take-home pay calculator shows your full payslip with any pension. If you earn over £100,000, the guide to the 60% tax trap explains why pension contributions are worth more in that range. The pension take-home calculator works out income in retirement, and NHS staff can use the NHS pension calculator.

What it leaves out

• Your employer's contributions and any tax relief on them.
• The annual allowance, the tapered allowance and carry-forward.
• Personal pensions you pay into outside work.

Official guidance

• Tax on your private pension: pension tax relief on GOV.UK
• Workplace pensions on GOV.UK

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