Salary Sacrifice Tax Saving Calculator
Find out how much income tax and National Insurance you save each year by leasing a car through salary sacrifice, after accounting for benefit-in-kind tax.
Frequently asked questions
How is the tax saving calculated?
The salary sacrifice deduction is taken from your gross pay, so you save income tax and employee National Insurance on the sacrificed amount. For a basic-rate taxpayer that is 20% IT + 8% NI = 28%. For a higher-rate taxpayer it is 40% + 2% = 42%. The BIK tax on an EV (2% of P11D) is subtracted from the gross saving.
Is the NI saving the same for everyone?
No. Employee NI is 8% on earnings between £12,576 and £50,270, then 2% above that. If your salary after sacrifice stays above the upper earnings limit, your NI saving is only 2% of the sacrificed amount. Below the upper limit, you save at 8%.
Do I still get a tax saving on a petrol or diesel car?
Yes, but the BIK rate is much higher (15-37% depending on CO2), which eats into the tax saving. For high-emission cars the BIK tax can exceed the IT + NI saving, making salary sacrifice less attractive than a personal lease.
Does the 60% tax trap affect salary sacrifice savings?
Yes. If your gross salary is between £100,000 and £125,140, your effective marginal rate is around 60% due to the personal allowance taper. Salary sacrifice in this band delivers exceptionally large savings — up to 60% off the gross lease cost before BIK.
These calculations are estimates based on 2026/27 HMRC and DVLA rates. Speak to a lender or qualified financial adviser for a personalised quote.