Pension Tax Relief Calculator UK
See how much tax relief you get on pension contributions and what they really cost you.
Your pension contribution of £6,000/year costs you
£3,600
You save £2,400 in tax relief (40% discount)
Goes into pension
£6,000
Tax relief (auto)
£1,200
20% basic rate
Extra relief (claim)
£1,200
20% via self-assessment
If via Salary Sacrifice Instead
Salary sacrifice saves additional NI on top of tax relief:
Relief at Source
Costs £3,600
Salary Sacrifice
Costs £3,480
Save extra £120 NI
How Pension Tax Relief Works
When you contribute to a pension, the government adds tax relief. Basic rate (20%) is added automatically by your pension provider. If you pay higher (40%) or additional (45%) rate tax, you claim the extra relief through self-assessment — HMRC either refunds you or adjusts your tax code.
With salary sacrifice, your employer reduces your salary before tax and NI, then contributes the full amount to your pension. This saves you both tax AND National Insurance, making it the most tax-efficient method.