UK Pension Contribution Calculator 2026/27 — Tax & NI Relief
See how much pension contributions really cost you for the 2026/27 tax year. Work out net-cost vs gross pension saved, including income tax and National Insurance relief for England, Wales, Scotland and NI.
Last updated · Tax year 2026/27
| Gross salary | £40,000 |
|---|---|
| Going into pension | −£2,000 |
| Tax + NI relief | +£560 |
| Net cost to take-home | −£1,440 |
| Take-home after pension | £30,880 |
Take-home pay
£30,880
28.0% effective tax rate Income Tax plus employee National Insurance as a percentage of your gross salary. Excludes pension, student loan, and HICBC.
- Monthly
- £2,573
- Weekly
- £594
- Daily
- £119
- Hourly
- £15.84
How pension contributions save you tax
When you contribute to a pension through salary sacrifice, your gross salary is reduced by the contribution amount before Income Tax and National Insurance are calculated. This is the most efficient form of pension relief available in the UK.
For a £100 contribution:
- Basic-rate taxpayer (earning up to £50,270): net cost ≈ £72 (20% IT + 8% NI saved)
- Higher-rate taxpayer above UEL (£50,270–£125,140): net cost ≈ £58 (40% IT + 2% NI saved)
- Additional-rate taxpayer (above £125,140): net cost ≈ £53 (45% IT + 2% NI saved)
What we show
We run the salary calculation twice — once without pension, once with — and present the difference as gross contribution, net cost, and tax + NI relief. The relief percentage shows you how efficient the contribution is at your marginal rate.
Caveats
- Annual allowance is £60,000 (2026/27, unchanged since April 2023). Tapered down to £10,000 for adjusted income above £260,000.
- Lifetime allowance was abolished in April 2024 — no cap on pot size.
- We assume salary sacrifice. Relief-at-source schemes may require a Self Assessment claim for higher-rate relief.
Frequently asked questions
- How much tax relief do I get on pension contributions?
- If you sacrifice salary into pension, you save both income tax and National Insurance at your marginal rate. A basic-rate taxpayer saves 28% (20% IT + 8% NI); a higher-rate taxpayer sacrificing above the UEL saves 42% (40% IT + 2% NI).
- Is salary sacrifice better than relief-at-source?
- Usually yes — salary sacrifice also saves the NI your employer would pay, which some schemes split back into your pension. Relief-at-source only gives income tax relief (not NI) without a claim via Self Assessment.
- What is the annual pension allowance?
- £60,000 per tax year for 2026/27 (raised from £40,000 in April 2023; unchanged since), tapered down to £10,000 for very high earners. Contributions above this lose tax relief.
- Can I claim higher-rate relief if my employer only does basic-rate?
- Yes — if your scheme uses relief-at-source and you pay higher-rate tax, you must claim the additional 20% or 25% through Self Assessment. Salary sacrifice gives you full relief automatically.
- Does this include employer contributions?
- No — we model only your personal contribution. Employer contributions go on top and aren't treated as your income.