Pensions are the most tax-efficient way to save in the UK. Enter what you want to pay in and your tax band to see the relief added, what it really costs you after tax, and how much ends up in your pot.
Personal pension · 2026/27
When you pay into a personal pension, the government refunds the Income Tax you paid on that money. In a relief-at-source scheme, your provider claims 20% automatically — so for every £80 you pay, £100 goes into your pot. Higher and additional-rate taxpayers can reclaim a further 20% or 25%, but only by asking HMRC.
| Tax band | Total relief | Net cost of £100 in pot |
|---|---|---|
| Basic (20%) | 20% | £80 |
| Higher (40%) | 40% | £60 |
| Additional (45%) | 45% | £55 |
| £100k–£125k band | ~60% | ~£40 |
You can normally pay in up to £60,000 a year (or 100% of your earnings if lower) with tax relief. High earners face a tapered allowance down to as little as £10,000, and you can carry forward unused allowance from the previous three years. Going over the allowance triggers a tax charge.
Compare this with sacrificing salary instead on the salary sacrifice calculator, and project the final pot with the pension calculator.
Relief at your highest rate. A basic-rate £80 net payment becomes £100 in the pot; a higher-rate taxpayer's £100 costs about £60 net, an additional-rate taxpayer's about £55.
£60,000, covering your and your employer's contributions plus relief. High earners may be tapered to as low as £10,000, and unused allowance can be carried forward three years.
The extra 20% (or 25% at additional rate) isn't automatic — claim it through Self Assessment or by contacting HMRC. Many higher-rate taxpayers miss this refund.
You get relief on contributions up to 100% of your earnings, capped at the £60,000 annual allowance. Non-earners can still pay in £2,880 net (£3,600 gross) a year with relief.
