2026/27 TAX YEAR

UK Salary Sacrifice Calculator

See how salary sacrifice pension contributions can reduce your taxable pay, lower your Income Tax and National Insurance, and help you keep more money working for your future.

£
%

Reduce your tax with pension contributions

Salary sacrifice can make pension contributions more efficient because the contribution is taken before Income Tax and National Insurance are calculated.

Common salaries:

Results

Gross Salary£50,000.00
Salary Sacrificed-£2,500.00
Taxable Salary After Sacrifice£47,500.00
Total Tax & NI Saving£700.00
Monthly saving£58.33
Take-home after sacrifice£37,719.60

Tax optimisation insight

Your pension contribution of £2,500.00 could save you £700.00 in Income Tax and National Insurance.

Real take-home cost£1,800.00
Effective relief28.0%

Breakdown

Before Salary Sacrifice

Income Tax£7,486.00
National Insurance£2,994.40
Net Income£39,519.60

After Salary Sacrifice

Income Tax£6,986.00
National Insurance£2,794.40
Net Income£37,719.60

Savings

Income Tax Saved£500.00
NI Saved£200.00
Actual Take-home Reduction£1,800.00

About the UK Salary Sacrifice Calculator

Use this salary sacrifice calculator to estimate how pension contributions can reduce your taxable pay, Income Tax, National Insurance, and take-home pay for the 2026/27 tax year.

Salary sacrifice is commonly used for workplace pension contributions. It can be tax efficient because your salary is reduced before Income Tax and employee National Insurance are calculated.

This means part of your pension contribution may be effectively funded by tax and NI savings, helping you build your pension while reducing your immediate tax bill.

This calculator is designed for UK employees who want a simple estimate of their tax saving from salary sacrifice pension contributions.

Frequently Asked Questions