Pension Contribution Tax Relief Calculator 2024/25
Calculate the true cost of pension contributions and the tax relief you receive. Compare personal pension (relief at source) and salary sacrifice to see which saves you more.
Pension Contribution Calculator
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Your gross annual income before tax
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How pension tax relief works
The government effectively tops up your pension contributions by adding tax relief. A basic-rate taxpayer contributing £800 net to a personal pension receives £200 government top-up, making the gross contribution £1,000. Higher-rate taxpayers can reclaim an additional 20% through their self-assessment tax return, and additional-rate taxpayers an extra 25%.
Salary sacrifice vs personal pension
With salary sacrifice you give up gross salary before tax is calculated, saving both income tax AND National Insurance. A higher-rate taxpayer using salary sacrifice effectively receives 52p of pension for every 48p they forgo (saving 40% IT + 8% NI on income up to £50,270). Personal pension relief at source gives the full tax benefit but no NI saving.
Annual allowance carry-forward
If you have unused annual allowance from the past three tax years, you can make a larger contribution in the current year. The 2021/22 and 2022/23 annual allowances were £40,000 each; 2023/24 was £60,000. Maximum carry-forward available in 2024/25 is therefore £140,000, giving a potential total contribution of £200,000 (subject to having sufficient earnings).
Lifetime Allowance abolished April 2024
The LTA was scrapped from 6 April 2024. There is no longer a tax charge for large pension pots. The tax-free cash lump sum remains capped at £268,275 (25% of the old LTA).