Do you know how much your pension annual allowance is?
Our free pension taper calculator helps you estimate whether your pension annual allowance could be reduced because of your income.
Enter your income, pension contributions and other details. The calculator then estimates your threshold income, adjusted income and potential tapered annual allowance based on the information you provide.
This can help you answer an important question: how much can I contribute to my pension before I may face an annual allowance tax charge?
The result is an illustration rather than a tax calculation or guarantee. Pension tax rules can be complex, and the amount you can contribute without an annual allowance charge can depend on your circumstances and any unused allowance you may be able to carry forward.
What is the tapered annual allowance?
The tapered annual allowance is a reduced pension contribution allowance that can apply to higher earners.
For the 2026/27 tax year, most people can contribute up to £60,000 to their pension each year without triggering an annual allowance tax charge. If you have a high income, however, your allowance could be reduced.
The taper can apply if your threshold income is above £200,000 and your adjusted income is above £260,000.
If the taper applies, your annual allowance reduces by £1 for every £2 that your adjusted income is above £260,000. The minimum tapered annual allowance is £10,000.
How is the tapered annual allowance worked out?
The rules use two different income figures: threshold income and adjusted income.
Threshold income broadly looks at your taxable income, with certain pension contributions and other adjustments taken into account.
Adjusted income goes further by including certain pension contributions, including employer contributions. This means your adjusted income can be higher than your salary or taxable income.
For example, if your adjusted income is £280,000, it is £20,000 above the £260,000 threshold. Your annual allowance would therefore be reduced by £10,000, from £60,000 to £50,000.
The calculation can be more complicated if you have a defined benefit pension, receive significant employer contributions or have more than one pension.
Can I still contribute more than my tapered annual allowance?
You may be able to contribute more than your annual allowance without paying an annual allowance tax charge if you have unused allowance from previous tax years. This is known as carry forward. You can normally carry forward unused allowance from the previous three tax years, provided you meet the relevant conditions.
Your available allowance can therefore be higher than the tapered annual allowance shown for the current tax year.
If you have several pensions, you also need to consider your pension savings across all of your schemes when working out whether you have exceeded your available allowance.
What happens if I exceed my annual allowance?
If your pension savings are higher than your available annual allowance, you may have to pay an annual allowance tax charge on the excess.
This does not necessarily mean you have to stop contributing to your pension. The potential tax charge needs to be considered alongside the tax relief and other benefits you may receive from making pension contributions.
If you think you may have exceeded your allowance, it can be useful to work out whether you have any unused allowance available to carry forward before deciding what to do next.
Does the pension taper apply to everyone with a high income?
Having an income above £200,000 does not automatically mean that your pension allowance will be tapered.
Both the threshold income and adjusted income tests need to be considered. Pension contributions can also affect the figures used in the calculation.
This is why your salary alone may not be enough to determine whether the taper applies.
What if I have a defined benefit pension?
The calculation can be different if you have a defined benefit or final salary pension. Instead of simply looking at the contributions paid into your pension, the annual allowance calculation generally takes account of the increase in the value of your pension benefits during the tax year.
This means that someone with a defined benefit pension could potentially exceed their annual allowance even if they have not personally made large pension contributions.
If you have a defined benefit pension, your pension provider should be able to give you information about your pension input amount.
Should I speak to a financial adviser about the pension taper?
A pension taper calculator can be a useful starting point, but calculating your annual allowance can involve several different income and pension figures. Your position may also be affected by carry forward, defined benefit pension savings or whether you have accessed a pension flexibly.
A regulated financial adviser can help you understand how the tapered annual allowance applies to your circumstances and consider how much you may be able to contribute to your pension.
They can also help you consider the wider tax and retirement-planning implications of making pension contributions, particularly if you have a high income or a complex pension arrangement.
If you would like help understanding your pension allowance, you can use the Trusted Advisor adviser matching service to find a regulated financial adviser suited to your needs. Alternatively, email our team at hello@trusted-advisor.co.uk and we can help you understand the next steps.