Pension tax relief
Contributing to a pension is cheaper than it looks — the government adds tax relief at your marginal rate.
Real cost to you
£4,320
Government tax relief added
£1,680
Relief rate
28.0%
Contribution to pension
£6,000
Total added to pot
£6,000
- • UK: basic-rate relief is added at source; higher/additional-rate is claimed via self-assessment.
- • Ireland: relief is at your marginal rate, subject to age-based percentage limits.
- • US: 401(k) contributions reduce federal taxable income at your marginal rate.