There's a limit on how much you can pay into a pension with tax relief each year. Enter your income and contributions to see your annual allowance, any taper, and the charge on excess.
Income · contributions · 2026/27
The annual allowance caps the total pension contributions you can make each year while still getting tax relief. For 2026/27 it's £60,000 — combining your own contributions, any from your employer, and the growth in any defined-benefit scheme. Contribute more than your allowance and the excess is hit with an annual allowance charge at your marginal Income Tax rate, clawing back the relief.
| Adjusted income | Annual allowance 2026/27 |
|---|---|
| Up to £260,000 | £60,000 |
| £300,000 | £40,000 |
| £360,000+ | £10,000 (minimum) |
High earners get a reduced allowance. If your adjusted income exceeds £260,000 (and threshold income exceeds £200,000), the £60,000 allowance tapers down by £1 for every £2 over £260,000, to a floor of £10,000 at £360,000. This catches a lot of senior professionals and is one of the trickiest areas of pension tax.
Staying within your allowance means contributions get full tax relief — 20%, 40% or 45% depending on your band. Work out the relief and net cost with the pension contribution calculator, and model your retirement pot with the pension calculator.
The annual allowance for 2026/27 is £60,000 — the most you and your employer can contribute with tax relief in a year.
Above £260,000 adjusted income, the £60,000 allowance falls by £1 for every £2 over the limit, to a £10,000 floor at £360,000.
The excess over your allowance is taxed at your marginal rate (20%, 40% or 45%), clawing back the tax relief on the over-contribution.
Yes — you can carry forward unused allowance from the previous three years if you were a scheme member, letting you exceed £60,000 in one year.
