Pension Annual Allowance Calculator
Check if your pension contributions are within the 2025/26 Annual Allowance of £60,000. Calculate tapered AA for high earners, MPAA if you've accessed your pension, and carry forward unused allowance from previous years.
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How to Use This Calculator
AA Check tab
Enter your total pension contributions for the tax year (employee + employer combined) and your annual salary. Toggle the MPAA if you have flexibly accessed your pension (e.g. taken drawdown income). The calculator shows whether you are within or over your Annual Allowance, your remaining headroom, and any Annual Allowance charge at your marginal tax rate.
Taper Check tab
Enter your threshold income (gross income minus personal pension contributions) and adjusted income (threshold income plus employer contributions). The calculator tests both conditions — threshold income over £200,000 AND adjusted income over £260,000 — and calculates your tapered Annual Allowance. The taper reduces the AA by £1 for every £2 over £260,000, down to a minimum of £10,000.
Carry Forward tab
Enter your unused Annual Allowance from the previous 3 tax years and toggle whether you were a registered pension scheme member in each year. The calculator adds your carry forward to this year’s £60,000 allowance and shows your total available headroom for a large one-off contribution.
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The Formula
The Annual Allowance limits the total pension contributions that benefit from tax relief each year:
If MPAA triggered: AA = £10,000 (money purchase only)
Tapered AA = £60,000 − ((Adjusted Income − £260,000) ÷ 2)
Minimum tapered AA = £10,000 (at £360,000+ adjusted income)
Carry Forward = Current year AA + Unused AA from previous 3 years
AA Charge = Excess × Marginal Income Tax Rate
The taper only applies when both conditions are met: threshold income exceeds £200,000 AND adjusted income exceeds £260,000. If either condition fails, the full £60,000 allowance applies.
The Annual Allowance charge is effectively taxed as additional income at your marginal rate (20%, 40%, or 45%), reported via Self Assessment.
Example
James — higher-rate taxpayer with large employer contributions
James earns £95,000 and his employer contributes 15% of salary to his pension. He also makes personal contributions via salary sacrifice.
Step 1: Total contributions
Step 2: AA check
Step 3: Carry forward opportunity
James is comfortably within his standard AA. If he wanted to make a one-off large contribution (e.g. from a bonus or inheritance), he could contribute up to £130,000 this year using carry forward, provided he was a pension member in each of the prior 3 years.