How your State Pension is taxed
Understand how tax on your State Pension is worked out when you have other income.
Your State Pension is taxable income, but tax is not taken off before you get it.
You’ll only pay tax if your total taxable income, including your State Pension is higher than your personal allowances.
How we work out your taxable State Pension
The State Pension rates usually change in April. If you started to receive your State Pension on or after 6 April 2010, we base a full year’s State Pension on:
- one week at your weekly rate before the amount changes in April
- 51 weeks at your weekly rate after the amount changes in April
To work out your taxable State Pension amount, we use the amounts you were entitled to get over the tax year, rather than the actual payments you get. These amounts are shown on your State Pension letter from the Department for Work and Pensions (DWP).
Example
Your weekly State Pension is:
- £160 per week (before the amount changes in April)
- £170 per week (after the amount changes in April)
To calculate your taxable State Pension amount for the year we use:
- £160 × 1 week = £160
- £170 × 51 weeks = £8,670
We add these together to get your total taxable State Pension = £8,830.
If you start to receive your State Pension part way through the year we tax you on the number of weeks you receive payments for.
Example
Your State Pension entitlement started on 4 January 2026 at £170 per week. The first payment you received was on the 4 March 2026. This payment included the pension amounts due from 4 January 2026 to the 4 March 2026.
To calculate your taxable State Pension amount we work out the number of weeks left in the tax year from your entitlement start date and multiply this by your weekly State Pension amount.
£170 × 13 weeks = £2,210 total taxable State Pension.
We’ll use your total taxable State Pension figure when working out your Income Tax. You’ll also need to include this figure in your Self Assessment tax return if you submit one.
How we work out if you owe tax
This is a simple explanation of how we work out your tax. It can be more complicated, depending on your income and circumstances.
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We add your taxable State Pension to your other taxable income. This is your total taxable income for the year.
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We then take off any allowances you’re entitled to and tax any remaining income using the Income Tax rates that apply to you.
Find out more information about Income Tax rates and Personal Allowances.
How you’ll pay tax
If you have other income from employment or pensions
We’ll usually change your tax code so the tax due is collected from your wages or other pensions.
If we’re unable to collect the tax due through your tax code, we may send you a Simple Assessment tax calculation after the end of the tax year.
If you submit Self Assessment tax returns
You’ll need to include your annual State Pension entitlement amount on your tax return.
If you use Making Tax Digital for Income Tax software
When you submit your tax return you must check that your State Pension entitlement amount is included.