Tax Calculate

    Pension Annual Allowance Calculator

    Pension Contribution Details

    Carry Forward Allowances

    Enter unused annual allowance from previous tax years (if any)

    The annual increase will be multiplied by 16 and count towards your annual allowance

    Enter your pension details to calculate tax position

    Pension Annual Allowance Calculator UK - Complete Guide

    Our pension annual allowance calculator helps you calculate your annual pension allowance, work out pension carry forward from previous years, and determine if you're affected by the tapered annual allowance for high earners. Whether you need an annual allowance calculator to check your pension contributions or a pension carry forward calculator to maximize unused allowances, this free tool provides instant, accurate calculations for 2026/27.

    Understanding the pension annual allowance is crucial for anyone making significant pension contributions. The annual pension allowance for 2026/27 is £60,000 - this is the maximum you can contribute to pensions each tax year while receiving tax relief. However, high earners with adjusted income over £260,000 face a tapered annual allowance that reduces to a minimum of £10,000. Use our annual allowance calculator to see exactly where you stand.

    Our pension allowance calculator also handles pension carry forward - one of the most valuable but underused pension planning tools. If you didn't use your full annual pension allowance in the previous three years, you can carry forward the unused amounts to make larger contributions now. Our carry forward pension calculator automatically calculates your available carry forward and shows you the maximum you can contribute without triggering an annual allowance charge.

    Tapered Annual Allowance Calculator - How Tapering Works

    The tapered annual allowance calculator is essential for high earners. If your adjusted income exceeds £260,000, your annual pension allowance is tapered down by £1 for every £2 of adjusted income over this threshold, reducing to a minimum of £10,000 for those earning over £360,000.

    Tapered Annual Allowance Example - Using the Tapered Allowance Calculator

    High Earner Scenario: Jane earns £280,000 salary and contributes £20,000 personally while her employer contributes £15,000 to her pension. Let's calculate her tapered annual allowance.

    Annual salary:£280,000
    Personal pension contributions:-£20,000
    Threshold Income:£260,000
    (Must exceed £200,000 for tapering)✓ Exceeds threshold
    Annual salary:£280,000
    Plus employer contributions:+£15,000
    Adjusted Income:£295,000
    (Must exceed £260,000 for tapering)✓ Exceeds threshold
    Adjusted income:£295,000
    Less tapering threshold:-£260,000
    Excess income:£35,000
    Tapering (£1 per £2 excess):-£17,500
    Tapered Annual Allowance:£42,500

    Use our tapered annual allowance calculator above to calculate your exact tapered allowance.

    Pension Carry Forward Calculator - How to Use Unused Annual Allowance

    Our carry forward pension calculator helps you unlock unused pension allowances from previous years. The pension carry forward rules allow you to carry forward any unused annual pension allowance from the previous three tax years, potentially enabling you to contribute up to £240,000 in a single year (if you had zero contributions in the previous 3 years).

    How the Pension Carry Forward Calculator Works

    Carry Forward Example: Mark wants to make a large pension contribution of £100,000 in 2026/27. His annual pension allowance is £60,000, but he has unused allowances from previous years. Can he do it without an annual allowance charge?

    Available Allowances:

    2026/27 (current):£60,000
    2023/24 unused:£15,000
    2022/23 unused:£30,000
    2021/22 unused:£20,000
    Total Available:£125,000

    Contribution Usage (FIFO):

    Uses 2026/27 first:£60,000
    Uses 2021/22 next:£20,000
    Uses 2022/23 next:£20,000
    Total contributed:£100,000
    Remaining allowance:£25,000
    Annual allowance charge:£0

    Result: Using our pension carry forward calculator, Mark can contribute the full £100,000 without triggering an annual allowance charge by using his carry forward. He must use the current year's £60,000 allowance first, then works backwards through previous years' unused allowances.

    Key Pension Carry Forward Rules

    • You can only carry forward unused annual pension allowance from the previous 3 tax years
    • You must have been a member of a UK pension scheme in each year you're carrying forward from
    • You must use the current year's annual allowance first before using any carry forward
    • Carry forward is used on a first-in, first-out (FIFO) basis - oldest unused allowance first
    • Our annual allowance calculator automatically calculates your available carry forward

    Annual Allowance Examples 2026/27

    Basic Rate Taxpayer

    Annual Salary:£35,000
    Personal Contributions:£5,000
    Employer Contributions:£3,000
    Total Contributions:£8,000
    Threshold Income:£30,000
    High Earner Rules:No
    Tax Relief (20%):£1,000
    Effective Personal Cost:£4,000
    Remaining Allowance:£52,000

    High Earner (Tapered)

    Annual Salary:£300,000
    Personal Contributions:£20,000
    Employer Contributions:£15,000
    Threshold Income:£280,000
    Adjusted Income:£315,000
    Tapered Allowance:£32,500
    Excess Contributions:£2,500
    Tax Relief (45%):£9,000
    AA Charge (45%):£1,125
    Net Cost:£12,125

    DB Pension + Carry Forward Example

    Annual Salary:£80,000
    Personal Contributions:£15,000
    Employer Contributions:£8,000
    DB Annual Increase:£2,000
    DB Input (16x):£32,000
    Total Contributions:£55,000
    2023/24 Carry Forward:£20,000
    Available Allowance:£60,000
    Total Available:£80,000
    Tax Relief (40%):£6,000
    Effective Personal Cost:£9,000
    Remaining Allowance:£25,000

    Understanding Carry Forward

    How Carry Forward Works

    • ✓You can carry forward unused allowance from the previous 3 tax years
    • ✓You must have been a member of a pension scheme in those years
    • ✓Carry forward is used on a first-in, first-out basis
    • ✓You must use your current year's allowance first
    • ✓Maximum potential with carry forward: £240,000 (4 × £60,000)

    Carry Forward Example

    Tax Years Available

    2021/22 unused:£20,000
    2022/23 unused:£30,000
    2023/24 unused:£15,000
    2026/27 allowance:£60,000
    Total Available:£125,000

    Order of use: Current year (£60k) → 2021/22 (£20k) → 2022/23 (£30k) → 2023/24 (£15k)

    Pension Tax Rules 2026/27

    Key Allowances

    • Standard annual allowance: £60,000
    • Tapered minimum allowance: £10,000
    • Money purchase allowance (MPAA): £10,000
    • Lifetime allowance: £1,073,100 (frozen)

    Important Thresholds

    • Threshold income: £200,000
    • Adjusted income: £260,000
    • Scheme pays threshold: £2,000 charge
    • Carry forward period: 3 years

    Frequently Asked Questions

    How do I use the pension annual allowance calculator?+
    Use our pension annual allowance calculator by entering your annual salary, personal pension contributions, and employer contributions. The annual allowance calculator automatically calculates your available pension annual allowance (£60,000 standard or tapered for high earners), applies any pension carry forward from previous years, and shows if you'll face an annual allowance charge.
    What is the pension annual allowance for 2026/27?+
    The pension annual allowance for 2026/27 is £60,000. This is the maximum you can contribute to all UK pension schemes in a tax year and receive tax relief. Use our annual pension allowance calculator to check your contributions against this limit. High earners may have a reduced tapered annual allowance.
    How does the tapered annual allowance calculator work?+
    Our tapered annual allowance calculator determines if you're a high earner subject to tapering. If your threshold income exceeds £200,000 AND adjusted income exceeds £260,000, your pension allowance is tapered by £1 for every £2 over £260,000, reducing to a minimum £10,000. The calculator shows your exact tapered allowance.
    How do I use the pension carry forward calculator?+
    Our pension carry forward calculator lets you use unused annual pension allowance from the previous 3 tax years. Enter your unused allowances from 2021/22, 2022/23, and 2023/24 and the carry forward pension calculator automatically applies them on a FIFO basis (oldest first), showing how much you can contribute without an annual allowance charge.
    What counts towards my annual pension allowance?+
    When using our annual allowance calculator, remember these count towards your pension annual allowance: your personal pension contributions, employer pension contributions, and the annual increase in defined benefit pensions (calculated as 16x the increase). Our pension allowance calculator automatically accounts for all these when calculating your position.
    Can I carry forward unused pension allowance from previous years?+
    Yes! Use our carry forward pension calculator to access unused allowances from the previous 3 tax years. If you were a pension scheme member but didn't use your full £60,000 annual pension allowance, you can carry forward the unused amount. Our pension carry forward calculator shows exactly how much additional allowance you have available.
    How is the annual allowance charge calculated?+
    The annual allowance charge applies when total contributions exceed your available allowance (including carry forward). Our annual allowance calculator computes the charge at your marginal tax rate (20%, 40%, or 45%). For example, £10,000 excess contributions = £4,000 charge at 40% rate. You can use 'scheme pays' if the charge exceeds £2,000.
    Can my employer help pay the annual allowance charge?+
    Yes, if your annual allowance charge exceeds £2,000, you can elect for your pension scheme to pay the charge directly to HMRC ('scheme pays'). The amount paid is then treated as a loan and reduces your pension benefits accordingly.
    How does salary sacrifice affect pension contributions?+
    Salary sacrifice reduces your gross salary in exchange for employer pension contributions. This can be very tax-efficient as it reduces both income tax and National Insurance. However, it may affect other salary-related benefits and could impact high earners' tapered allowance calculations.

    Related Tax Calculators

    Annual allowance checks work best alongside contribution relief, income tax and investment planning. use the pension tax relief calculator for contribution tax savings, use the income tax calculator for taxable income context and use the compound interest calculator for long-term pension growth modelling.

    Pension Relief
    Pension contribution tax savings
    Income Tax
    Calculate PAYE take-home pay
    Dividend Tax
    Tax on dividends for directors