Updated for 2026/27

Salary Sacrifice Calculator UK 2026/27

Enter your salary and sacrifice amount to estimate Income Tax savings, employee National Insurance savings and the real monthly impact of pension, cycle to work, EV car or other schemes.

Calculate saving
20% / 40% / 45% income tax rates 8% employee NI to £50,270 4% EV BIK 2026/27 Updated April 2026 Free to use

Salary Sacrifice Tax & NI Saving Calculator

Adjust your salary and sacrifice amount — results update instantly.

Tax year 2026/27
Some employers pass their 15% NI saving as extra pension.
£42,457 take-home / yr £3,538/mo
Take-home after
£42,457
Annual saving
£2,100
Net monthly cost
£242
Take-home after sacrifice £42,457
Income tax saving £2,000
Employee NI saving £100
Employer NI saving £750
How it works

Three steps to estimate your salary sacrifice saving

01

Enter salary and sacrifice amount

Enter your gross annual salary and how much you want to sacrifice. Use the quick-select buttons for common amounts.

02

Choose scheme and region

Select pension, cycle to work, EV car or other. Choose England/Wales/NI or Scottish income tax rates to see the correct saving.

03

Review tax and NI savings

See your annual and monthly income tax saving, employee NI saving, and net cost — what the sacrifice actually costs in reduced take-home pay.

Worked example

£60,000 salary, £5,000 pension sacrifice

On a £60,000 salary in England/Wales/NI, a £5,000 annual pension salary sacrifice reduces your taxable salary to £55,000. The sacrifice falls partly in the higher-rate (40%) band: income tax saving is approximately £2,000. Employee NI saves £100 (2% rate above £50,270). Total annual tax and NI saving: £2,100.

Your take-home pay reduces by £2,900 per year (£242/month) — but you receive £5,000 into your pension. The pension effectively costs you £2,900 in reduced take-home, not £5,000. That is £2,100 better than paying from net pay.

Your employer also saves £750 in employer NI (15% × £5,000). If your employer passes this saving on, your pension pot can grow by that amount too — ask your employer's HR or payroll team.

Guides

Salary sacrifice guides

In-depth guides covering every aspect of UK salary sacrifice — updated for the 2026/27 tax year.

Employer NI

Salary Sacrifice Employer NI Saving 2026/27

How employer NI savings arise under salary sacrifice and whether your employer passes them on.

Electric car

Salary Sacrifice Electric Car 2026/27

EV salary sacrifice, 4% BIK rate for 2026/27, and how the tax-free saving compares to leasing privately.

Cycle to work

Cycle to Work Salary Sacrifice 2026/27

The cycle to work scheme: savings, spending limits and how the sacrifice works in practice.

Bonus sacrifice

Salary Sacrifice Bonus into Pension 2026/27

Sacrificing a bonus into a pension — HMRC timing rules, employer policy and tax savings.

Scotland

Salary Sacrifice in Scotland 2026/27

Scottish income tax rates, NI savings and how sacrifice works differently north of the border.

Minimum wage

Salary Sacrifice and Minimum Wage 2026/27

Why salary sacrifice must not reduce cash pay below the National Minimum Wage, and what to check.

Disadvantages

Salary Sacrifice Disadvantages 2026/27

Mortgage affordability, statutory pay, minimum wage limits and other downsides to consider.

Pension comparison

Salary Sacrifice vs Normal Pension Contributions

Compare salary sacrifice against relief-at-source contributions — which saves more in 2026/27?

Childcare

Salary Sacrifice for Childcare 2026/27

Tax-Free Childcare and employer-supported childcare via salary sacrifice — eligibility and savings.

Maternity pay

Salary Sacrifice and Maternity Pay 2026/27

How salary sacrifice affects SMP calculations and employer pension duties during maternity leave.

Calculators

Salary sacrifice calculators

Free interactive calculators — each focused on a specific salary sacrifice scenario.

UK Salary Sacrifice Calculator

The main calculator — enter salary and sacrifice amount to see income tax and NI savings instantly.

Live

Pension Salary Sacrifice Calculator

Estimate tax and NI savings from pension sacrifice, with optional employer NI passthrough.

Live

Bonus Sacrifice Calculator

See the tax saving from sacrificing a bonus into pension instead of taking it as cash.

Live

Salary Sacrifice £100k Calculator

Estimate how sacrifice restores your personal allowance when income exceeds £100,000.

Live

Employer NI Saving Calculator

Calculate the employer NI saving from salary sacrifice and optional pension passthrough.

Live
Calculator suite

Three more tools in the same network

UKSalarySacrificeCalculator is part of the UK Money Calculators network — free, independent tools for estimating UK tax and finances.

EmployerCalculator.co.uk
Employer NI & cost calculator
Employer NI at 15%, auto-enrolment pension and total cost to employ — the employer's perspective on salary sacrifice savings.
Visit EmployerCalculator.co.uk →
AfterTaxSalary.co.uk
UK take-home pay calculator
PAYE income tax, National Insurance, student loan and pension deductions — see your take-home before any sacrifice.
Visit AfterTaxSalary.co.uk →
PensionTaxReliefCalculator.co.uk
Pension tax relief calculator
Compare relief at source, net pay and salary sacrifice — see which method gives the most pension tax relief.
Visit PensionTaxReliefCalculator.co.uk →
FAQ

Salary sacrifice — common questions

What is salary sacrifice?
Salary sacrifice is a HMRC-approved arrangement where you give up part of your gross salary in exchange for a non-cash benefit — typically pension contributions, a cycle-to-work scheme or an EV company car. Because your gross salary is reduced, you pay less income tax and National Insurance.
How much National Insurance do I save with salary sacrifice?
Employee NI for 2026/27 is 8% on earnings between £12,570 and £50,270, and 2% above that. So if your salary sits in the 8% band, each £1,000 of salary sacrifice saves you £80 in NI alone, plus income tax relief on top.
Does salary sacrifice affect my state pension?
If your post-sacrifice salary falls below the Lower Earnings Limit (£6,396 for 2026/27), it can affect your state pension entitlement. Most people's sacrificed salary stays well above this, but it's worth checking if you sacrifice a large amount.
Is salary sacrifice different for Scottish taxpayers?
The NI saving is the same UK-wide. Income tax savings differ because Scotland has its own bands — the intermediate rate is 21% and the higher rate starts at a different point. Our calculator lets you select Scottish rates.
Can my employer pass on their NI saving to me?
Employers save 15% employer NI on the sacrificed amount. Some employers pass part or all of this saving back as an extra employer pension contribution. Our calculator shows the employer NI saving separately.
What EV benefit-in-kind rate applies for 2026/27?
For 2026/27 the benefit-in-kind rate on fully electric vehicles is 4%, rising to 5% in 2027/28. This affects the taxable benefit value when using salary sacrifice for an EV company car. Our calculator highlights this where relevant.
Methodology

How we calculate salary sacrifice savings

We calculate take-home pay before and after the sacrifice using 2026/27 income tax and NI rates. The income tax saving is the difference in income tax on the sacrificed amount. The employee NI saving is the reduction in Class 1 employee NI. The employer NI saving is 15% of the sacrifice — your employer's secondary NI reduction.

For Scotland, we apply the published 2026/27 bands: 19% starter, 20% basic, 21% intermediate, 42% higher, 45% advanced, 48% top. The personal allowance tapers above £100,000 adjusted net income, reaching zero at £125,140. Our calculator applies this correctly.

Read full methodology →

Published by the UK Money Calculators editorial team · Last updated for the 2026/27 tax year · Calculations are estimates only and are not financial or tax advice. Consult a qualified adviser before making salary sacrifice decisions. · GOV.UK salary sacrifice guidance · NI rates and allowances