Salary Sacrifice Calculator
Calculate how much you save with salary sacrifice schemes. See the real cost of pension contributions, cycle to work, electric cars and more after tax savings.
Your Details
Salary Sacrifice Summary
Tax Savings
You save £672.00 in tax! The £2,400.00 benefit only costs you £1,728.00 (72% of face value).
Take-Home Pay
Your tax band: Basic Rate (20%)
Salary Sacrifice Tax Savings by Band
| Tax Band | Income Tax | NI Saved | Total Saving | £100 costs |
|---|---|---|---|---|
| Basic Rate | 20% | 8% | 28% | £72 |
| Higher Rate | 40% | 8% | 48% | £52 |
| Additional Rate | 45% | 2% | 47% | £53 |
Popular Salary Sacrifice Schemes
Pension Contributions
The most common salary sacrifice. Additional pension contributions via salary sacrifice save both Income Tax and NI, making them more efficient than personal pension contributions.
Cycle to Work
Get a bike and equipment tax-free through salary sacrifice. Save up to 48% on bikes worth up to £3,000+ depending on your employer's scheme.
Electric Cars
Electric company cars via salary sacrifice have very low Benefit in Kind rates (2% for 2025/26), making them significantly cheaper than buying or leasing privately.
Tech Schemes
Get laptops, phones, tablets and tech equipment through salary sacrifice. Spread the cost over 12-36 months while saving on tax and NI.
Frequently Asked Questions
What is salary sacrifice?▼
Salary sacrifice (also called salary exchange) is an arrangement where you give up part of your salary in exchange for a non-cash benefit. Because your gross salary is reduced, you pay less Income Tax and National Insurance, making the benefit cheaper than buying it yourself.
How much can I save with salary sacrifice?▼
As a basic rate taxpayer, you save 28.000000000000004% (20% tax + 8% NI). Higher rate taxpayers save 48.00000000000001% (40% tax + 8% NI). A £100/month benefit effectively costs a higher rate taxpayer only £52.
What can I get through salary sacrifice?▼
Common salary sacrifice benefits include: pension contributions, cycle to work schemes, electric car schemes, technology schemes (laptops, phones), and legacy childcare vouchers. Your employer must offer these schemes for you to participate.
Does salary sacrifice affect my mortgage application?▼
Yes, salary sacrifice reduces your gross salary, which lenders use to calculate affordability. This could reduce your maximum borrowing. Consider pausing salary sacrifice temporarily before a mortgage application, or use a lender who considers total compensation.
Does salary sacrifice affect my state pension?▼
No, as long as your reduced salary stays above the National Insurance Lower Earnings Limit (£12,570/year), you'll still build up State Pension entitlement. Your employer must also maintain NI contributions on your behalf.