UK Pension Annual Allowance Taper Calculator
Most people can pay up to £60,000 a year into their pension with tax relief. High earners see this reduced by the tapered annual allowance.
The taper only applies if both your threshold income is over £200,000 and your adjusted income is over £260,000. Your allowance falls by £1 for every £2 above £260,000, down to a minimum of £10,000.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: adjusted income of £300,000 in 2026/27
Examples at common levels
See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.
| Scenario | Your tapered annual allowance | Reduction from the standard allowance | Does the taper apply? | Excess over your allowance | Estimated annual allowance charge |
|---|---|---|---|---|---|
| £250k threshold, £280k adjusted, £50k savings | £50,000.00 | £10,000.00 | Yes | £0.00 | £0.00 |
| £250k threshold, £300k adjusted, £60k savings | £40,000.00 | £20,000.00 | Yes | £20,000.00 | £8,000.00 |
| £180k threshold, £300k adjusted — taper does not apply | £60,000.00 | £0.00 | No | £0.00 | £0.00 |
| £400k threshold, £400k adjusted, £70k savings | £10,000.00 | £50,000.00 | Yes | £60,000.00 | £27,000.00 |
Important assumptions
- Uses the £60,000 standard annual allowance and the £200,000 / £260,000 taper limits for 2026/27.
- The allowance is reduced by £1 for every £2 of adjusted income over £260,000, rounded down to the nearest £1, with a £10,000 minimum.
- Excludes unused allowance carried forward from the previous three tax years.
- The annual allowance charge is added to your income and taxed at your marginal rate — this calculator asks you to choose the rate.
Rates & official sources
Every calculation is based on the official rates and rules published by GOV.UK and HMRC.
Frequently asked questions
What is the tapered annual allowance?
It is a reduced pension annual allowance for high earners. If your threshold income is over £200,000 and your adjusted income is over £260,000, your allowance is cut by £1 for every £2 above £260,000, down to a £10,000 minimum.
What is the difference between threshold and adjusted income?
Threshold income is broadly your taxable income before most pension contributions. Adjusted income adds back employer pension contributions (and defined-benefit growth). Both must exceed the limits for the taper to apply.
What happens if I go over my tapered allowance?
The excess is added to your taxable income and charged at your marginal rate through the annual allowance charge, reported on your Self Assessment return. Your pension scheme may pay it on your behalf.
Can I still use carry-forward with a tapered allowance?
Yes, unused tapered annual allowance from the previous three tax years can be carried forward, provided you were a member of a pension scheme in those years. Unused allowance is calculated on your actual (tapered) allowance for each year.
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Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.