How to use the Pension Tax Relief Calculator
- 1 Enter your yearly taxable income.
- 2 Enter how much you pay into your pension a year from take-home pay.
- 3 Read the gross contribution that goes into your pension.
- 4 Check the extra relief you can claim and your real cost.
Worked example
A £60,000 earner paying £4,000 into a personal pension. The provider adds £1,000 of basic rate relief, so £5,000 goes into the pension. The whole £5,000 sits in the higher rate band, so you can claim another £1,000 through Self Assessment. The real cost to you is only £3,000.
Features
Relief at source
Your provider claims 20% from HMRC and adds it to your pension.
Higher rate relief
Extra relief at 20% or 25% on the part of the contribution taxed at 40% or 45%.
Real cost
What the contribution costs you after all relief.
Annual allowance check
A warning when gross contributions go over £60,000.
When to use it
Personal pensions and SIPPs
See what your contribution becomes once relief is added.
Higher rate taxpayers
Know how much to claim back on your tax return.
Bonus planning
See how paying a bonus into a pension cuts its cost.
Saving for retirement
Compare the real cost of pension saving with an ISA.
Frequently asked questions
How does pension tax relief work?
For relief-at-source pensions, you pay from taxed income and the provider adds 20%. Paying £80 puts £100 in your pension. Higher and additional rate taxpayers claim the rest through Self Assessment.
How much can I pay in?
Up to 100% of your earnings, capped by the annual allowance of £60,000 gross including employer contributions. The allowance tapers down to £10,000 for very high incomes.
Does a workplace pension work the same way?
Not always. Net-pay and salary-sacrifice schemes take contributions before tax, so relief is given automatically and there is nothing to claim.
How do I claim higher rate relief?
Enter your gross personal pension contributions on your Self Assessment return, or write to HMRC if you do not file one. HMRC extends your basic rate band or adjusts your tax code.
Do non-taxpayers get relief?
Yes. Anyone under 75 can pay up to £2,880 a year into a relief-at-source pension and get £720 added, even with no earnings.
Is Scotland different?
Scottish taxpayers get 20% from the provider and can claim more at 21%, 42%, 45% or 48% depending on their band. This calculator uses rest-of-UK bands.
Can I carry forward unused allowance?
Yes. Unused annual allowance from the previous three tax years can be used if you were a member of a registered pension scheme in those years.
Is a pension better than an ISA?
Pension contributions get tax relief now, and 25% of the pot can usually be taken tax-free, but the rest is taxed as income and is locked until age 57 from 2028. An ISA has no relief but full access at any time.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Reviewed by ToolsUnlocked Team · Last updated