UK Pension Taper Calculator
Earn more than £260,000 adjusted income? Your £60,000 annual allowance tapers by £1 for every £2 over, down to a £10,000 floor.
The taper applies to the £60,000 standard annual allowance. Above £260,000 of adjusted income, allowance reduces by £1 per £2 of excess, with a £10,000 minimum at adjusted income £360,000+.
Worked examples
Adjusted income £300k: allowance = £60k − £20k = £40k.
Adjusted income £360k+: allowance = £10k floor.
Sources:
HMRC Pensions
· retrieved 2026-05-14.
Frequently asked questions
What is adjusted income?
Total income (earnings + investment income + employer pension contributions). Specifically excludes most personal pension contributions when net pay arrangement applies.
Can I avoid the taper?
Reducing 'adjusted income' is the lever. Salary sacrifice into pension reduces it (since employer contributions count, but you're sacrificing salary). Speak to a qualified accountant or IFA.