Answers · UK 2025/26

Do I pay Income Tax on my State Pension?

Yes, the State Pension counts as taxable income, but it is paid without any tax deducted at source. Whether you actually pay tax depends on your total income from all sources compared with your £12,570 Personal Allowance for 2026/27.

Last updated: 3 July 2026Last reviewed: 3 July 2026How we verify

Full answer

The State Pension is taxable income, but unlike a salary or an occupational pension, it is paid gross, with no Income Tax deducted before you receive it, since there is no PAYE mechanism attached to State Pension payments. Whether you actually end up paying any tax depends on your total taxable income for the year, including the State Pension itself, any private or workplace pension income, savings interest, and any other taxable income, compared against your £12,570 Personal Allowance for 2026/27. The full new State Pension is £241.30 a week, or £12,547.60 a year, which on its own is just below the £12,570 Personal Allowance, meaning someone relying solely on the full new State Pension with no other income would pay no Income Tax at all. However, most pensioners have some additional income -- a workplace or private pension, part-time earnings, or savings interest -- and if this combined total exceeds £12,570, tax becomes due on the excess at the normal 20%, 40% or 45% rates depending on total income. Since the State Pension is not taxed at source, HMRC typically collects any tax due on it by adjusting the tax code applied to another source of income, such as a private pension or employment, effectively reducing the tax-free allowance available against that other income to account for the untaxed State Pension received alongside it.