How much extra pension relief can a higher-rate taxpayer claim?

A 40% taxpayer can reclaim a further 20% on top of the 20% added at source — a total of 40% relief. On a £1,000 gross contribution that is an extra £200 claimed back through Self Assessment or by contacting HMRC.

How do additional-rate taxpayers claim pension relief?

A 45% additional-rate taxpayer gets 20% at source plus a further 25% claimed back — 45% relief in total. On a £1,000 gross contribution that is an extra £250 reclaimed, usually through a Self Assessment tax return.

● 2026/27 · 20% · 40% · 45% relief

Pension Tax Relief Calculator

Q: How does pension tax relief at source work?

When you pay into a personal or workplace pension from your take-home pay, the provider claims 20% basic-rate relief from HMRC and adds it to your pot. So a £800 net contribution becomes £1,000 gross — the £200 top-up is the basic-rate relief.

Every pension contribution gets a 20% top-up at source, and higher and additional-rate taxpayers can reclaim even more. Enter your salary and contribution to see the gross amount in your pot and the extra relief you can claim back for 2026/27.

💷 20% added at source 📈 Higher/additional reclaim 🏛️ HMRC sourced

Calculate your relief

Personal / relief-at-source pension · 2026/27

Annual gross salary

Your contribution from take-home pay net, per year

How pension tax relief works in 2026/27

Pension tax relief is the government's way of refunding the Income Tax you paid on money you choose to save for retirement. For personal pensions and most workplace schemes using relief at source, the mechanics run in two stages.

Stage one — relief at source. When you pay in from your take-home pay, your provider automatically claims 20% basic-rate relief from HMRC and adds it to your pot. Because you contribute net of basic-rate tax, an £800 payment is topped up by £200 to become a £1,000 gross contribution. Everyone gets this, including non-taxpayers (up to £2,880 net a year).

Stage two — higher and additional-rate relief. If you pay 40% or 45% tax, the 20% added at source is not the full story. You can reclaim the difference between your highest rate and 20%: an extra 20% for higher-rate taxpayers and an extra 25% for additional-rate taxpayers. This part is not automatic — you claim it through Self Assessment or by contacting HMRC.

Relief on a £1,000 gross contribution

A worked example: £60,000 salary, £8,000 net

You pay £8,000 from take-home pay.
Basic-rate top-up at source: £8,000 ÷ 0.80 = £10,000 gross (a £2,000 top-up).
As a higher-rate taxpayer you reclaim a further 20% of the £10,000 gross = £2,000 via Self Assessment.
Total relief: £4,000 — so £10,000 in your pension effectively cost you £6,000.

Contributions also lower your adjusted net income, which can rescue your Personal Allowance above £100,000 or take you under the £60,000 Child Benefit charge threshold.

Allowances and limits

Relief is given on contributions up to the higher of £3,600 or 100% of your relevant UK earnings, and within the annual allowance (£60,000 for most people, tapered for very high earners). For the detail on annual limits, see the pension annual allowance calculator or the pension contribution calculator.

Pension Tax Relief FAQs

How does relief at source work?

Your provider claims 20% basic-rate relief from HMRC and adds it to your pot. An £800 net payment becomes £1,000 gross — the £200 top-up is your basic-rate relief.

How much extra can a higher-rate taxpayer claim?

A further 20% on top of the 20% at source — 40% relief in total. On a £1,000 gross contribution that is an extra £200, claimed via Self Assessment.

How do additional-rate taxpayers claim?

20% at source plus a further 25% — 45% relief in total. On a £1,000 gross contribution that is an extra £250, usually claimed on a tax return.

Your net contribution	£0
Basic-rate top-up (20%)	£0
Gross contribution	£0
Extra reclaimable (Self Assessment)	£0
Total relief received	£0