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How Much Tax Will I Pay on My State Pension

Updated on October 14, 2026

Last updated: 14 October 2026

Do you pay tax on the State Pension?

Yes, the State Pension is taxable income, but it is paid without any tax taken off. The full new State Pension is £241.30 a week (£12,547.60 a year) in 2026/27, just under the £12,570 Personal Allowance. If it is your only income, you won’t pay tax. If you also have a private or workplace pension, or earnings, HMRC usually collects the tax on your State Pension through the tax code on that other income.

How HMRC collects the tax

Your situation How tax is collected
State Pension only No tax, if it’s under your Personal Allowance
State Pension plus a private pension or job Through the tax code on your other income
State Pension plus income with no PAYE, such as rent Through Self Assessment or a Simple Assessment letter
State Pension above the Personal Allowance with no other income HMRC sends a Simple Assessment bill

Example

Margaret gets the full new State Pension (£12,547.60) and a workplace pension of £8,000. Her Personal Allowance is used up by her State Pension except for about £22. Her workplace pension code is reduced so that almost all of the £8,000 is taxed at 20%, about £1,595 a year.

The Personal Allowance is frozen

The Personal Allowance stays at £12,570 until April 2031, while the State Pension rises each year under the triple lock. As a result, more people whose only income is the State Pension are getting close to the Personal Allowance. Check gov.uk each April for the current rates and any changes to how this is handled.

Check your tax code

State Pension increases each April mean your tax code changes too. Check your coding notice. Common errors include the wrong State Pension amount, duplicated benefits or missing Marriage Allowance.

Deferring your State Pension

If you defer, you get a higher weekly amount later. The extra is also taxable.

National Insurance

You don’t pay NIC on the State Pension or on earnings after State Pension age.

Common State Pension tax mistakes

Pensioners often don’t realise that the State Pension is taxable, because it’s paid without tax deducted. HMRC collects the tax through the tax code on a workplace or private pension, or by Simple Assessment. Check the figure shown for State Pension on your tax code notice against your annual uprating letter, and tell HMRC if it’s wrong. If you defer your State Pension, tax is due on the higher amount when you start claiming.

A further example

A retired teacher has a State Pension of £12,548 and a work pension of £10,000. The State Pension uses almost all of her Personal Allowance, so her work pension is taxed at 20% through PAYE.

Frequently asked questions

Why don’t I get a tax bill?

Tax on your State Pension is usually collected through your other pension’s tax code.

Can I ask for tax to be taken from my State Pension?

No. The DWP doesn’t deduct tax.

What is Simple Assessment?

A tax bill HMRC sends without you filing a return, usually by September after the tax year.

Can I get a refund if too much tax was taken?

Yes. See Civil Service pension refunds.

Related: Marriage Allowance.

Talk to Accotax

Want this handled for you? Our team at Accotax can help with tax on your State Pension. See our pension tax advice service, or contact us for a free, no-obligation quote.

This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 14 October 2026. It is not personal advice, so speak to an accountant about your own situation.

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