Pension Tax Relief Calculator 2025-26

See how much pension contributions actually cost you after tax relief.

📖 How does pension tax relief work?

When you contribute to a pension, the government tops it up with tax relief equal to the income tax you paid on that money. Basic-rate taxpayers get 20% relief automatically — meaning a £100 contribution only costs you £80. Higher-rate taxpayers can claim an extra 20% via self assessment.

2025-26 annual allowance: £60,000 (or 100% of earnings if lower) · Salary sacrifice also saves NI contributions · Money grows tax-free inside the pension

Annual Salary

Pension Contribution: 5%

Pension Paid In

£2,500

Tax Saving

£700

Net Cost to You

£1,800

Before vs After Pension Contributions

Take-Home Pay£39,520→£37,720

Income Tax£7,486→£6,986

National Insurance£2,994→£2,794

💡 For every £100 you put in: it only costs you £72 after tax relief (basic-rate taxpayer — 20% relief)

Assumes salary sacrifice pension scheme. Estimates only — consult an IFA for pension advice.

Sources & References

Pension tax relief figures are based on HMRC rules for the 2025-26 tax year. This is not financial advice — consult an IFA for personal guidance.

HMRC Pension Tax Relief HMRC Annual Allowance MoneyHelper: Pensions