✓ Updated for UK Tax Year 2026/27

UK Salary Sacrifice Calculator

Find out exactly how much you could save on tax and National Insurance through salary sacrifice — pension, electric car, cycle to work, and more.

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✓ Estimate only
✓ UK focused
✓ Free to use
✓ No sign-up required
Example: £45,000 salary, £5,000 pension sacrifice
Take-Home Before
£2,847
per month
Take-Home After
£2,947
per month
Tax paidYou keep
Estimated Annual Tax + NI Saving
£1,200
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Why use our calculator

Accurate UK Tax Calculations

Built specifically for UK employees with real tax logic for 2025/26 and 2026/27

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Real UK Tax Logic

Income tax, National Insurance, student loans, and pension — all calculated using current HMRC thresholds and rates.

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Multiple Sacrifice Types

Pension, electric vehicle, cycle to work, and childcare vouchers — calculate savings across all your benefits.

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Scotland Supported

Scottish income tax rates are fully supported. Select your tax region for accurate results wherever you are in the UK.

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Visual Comparison

Before and after charts show you exactly where your money goes and how much sacrifice saves you each month.

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Student Loan Plans

Plan 1, 2, 4, 5 and Postgraduate Loan all supported. Salary sacrifice can reduce your student loan repayments too.

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Share & Print

Copy your results, share your calculation, or print a summary to discuss with your employer or financial adviser.

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Free UK Salary Sacrifice Calculators

Choose the calculator that matches your benefit

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Salary Sacrifice Calculator

Calculate your full take-home pay before and after any salary sacrifice arrangement.

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Pension Salary Sacrifice

See how sacrificing salary into your pension reduces tax and NI for both you and your employer.

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EV Salary Sacrifice Calculator

Find out the true cost of an electric car through salary sacrifice after tax savings.

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Cycle to Work Calculator

Calculate your savings on a new bike and cycling equipment through the cycle to work scheme.

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Bonus Tax Calculator UK

Find out how much of your bonus you'll actually take home after income tax and National Insurance.

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Employer NI Savings

Calculate how much your employer saves in National Insurance contributions through salary sacrifice.

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Common questions

Salary Sacrifice FAQs

Salary sacrifice (also called salary exchange) is an arrangement between you and your employer where you agree to give up part of your gross salary in return for a non-cash benefit, such as pension contributions, an electric car, or a bicycle. Because the sacrifice is taken before tax, you pay income tax and National Insurance on a lower salary — saving you money.
Yes. When you sacrifice part of your salary, your taxable income falls by that amount. This means you pay less income tax and less National Insurance. Higher rate taxpayers benefit the most, as a greater proportion of their income is taxed at 40% or above.
Yes. Because salary sacrifice reduces your gross pay before National Insurance is calculated, you pay NI contributions on a lower figure. This can provide additional savings on top of the income tax reduction. Your employer also pays less employer NI — some employers pass these savings back to employees.
For most employees, yes. Sacrificing £5,000 into a pension could save a basic rate taxpayer over £1,000 per year in tax and NI. Higher rate taxpayers could save over £2,000. The savings depend on your salary, tax band, and what you sacrifice for. Use our calculator above to see your personal saving.
Yes. Student loan repayments are calculated as a percentage of your income above the repayment threshold. If salary sacrifice reduces your income below the threshold, or reduces the amount above it, your monthly student loan repayment will also fall. Our calculator accounts for this automatically.
Salary sacrifice can affect means-tested benefits (such as tax credits or Universal Credit) because these are calculated on your gross salary. It may also affect your entitlement to state pension if your salary drops below the Lower Earnings Limit (£6,396 in 2026/27). It can also affect mortgage affordability calculations. Always speak to a financial adviser before entering a salary sacrifice arrangement.
No. All results are estimates only. They are based on standard tax assumptions and do not account for your personal tax code, allowances, benefit-in-kind charges, or other individual circumstances. Results should not be treated as financial advice. Please consult a qualified accountant or financial adviser for advice tailored to your situation.
Important: All calculations on this website are estimates only. They are based on standard UK tax rates and thresholds and do not constitute financial, tax, or legal advice. Tax rules may change. Your personal circumstances, tax code, and individual allowances may differ from those used in these calculations. Always consult a qualified accountant, financial adviser, payroll provider, or tax adviser before making financial decisions.