SIPP Calculator guide
SIPP Calculator: Pension Tax Relief Explained
Use our SIPP calculator to see how much goes into your personal pension after tax relief, and how much extra higher-rate taxpayers can claim.
By the AllCalculator editorial teamUpdated 16 October 20261 min read
When you pay into a personal pension or SIPP, the government tops it up with tax relief. It's the UK's equivalent of a US IRA. Our SIPP Calculator shows how much goes in and what it really costs you.
How to use the calculator (SIPP Calculator)
- Enter the amount you pay in from your take-home pay.
- Choose your income tax band.
- Enter your earnings for the year.
How tax relief works
Personal pensions use relief at source:
- You pay in £80, and your provider claims £20 from HMRC, so £100 goes in.
- Higher-rate taxpayers can claim another 20% through Self Assessment.
- Additional-rate taxpayers can claim another 25%.
The limits
- You get relief on contributions up to 100% of your earnings, or £3,600 gross if you earn less.
- The annual allowance is £60,000, including employer contributions.
A worked example
With the calculator's default settings, paying in £8,000 puts £10,000 into your pension. A higher-rate taxpayer can claim back another £2,000, so it really costs just £6,000.
Frequently asked questions
When can I take my pension?
From age 55, rising to 57 in 2028. You can usually take 25% tax-free.
Is a workplace pension better?
If your employer contributes, usually yes: it's extra money. See our Pension Contributions Calculator.
Sources and further reading
Links open official and independent websites in a new tab.
This guide is general information to help you understand your options. It isn't financial, tax, legal or building advice and doesn't take your personal circumstances into account. Figures were checked when the guide was last updated and can change, so confirm anything important with GOV.UK, HMRC, a regulated adviser or a qualified tradesperson.