⚠ 10.2m over-65s now pay income tax — a record high
State Pension Tax Calculator 2026/27
The full new State Pension is £12,547.60 a year — just £22.40 below the personal allowance, which is frozen at £12,570 until April 2031. Find out in seconds whether you'll pay income tax, and how much. England, Wales & NI rates, with a Scotland toggle.
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Will you pay tax on your State Pension?
2026/27 rules · updates as you type
£
£
Scotland sets its own income tax bands. This estimate uses the 2026/27 Scottish rates (starter 19%, basic 20%, intermediate 21%, higher 42%, advanced 45%, top 48%).
£0
extra income tax caused by your State Pension this year
Total income
£0
Tax-free personal allowance
£12,570
Taxable income
£0
Total income tax for the year
£0
Your income after tax
Income after tax · year
£0
Take-home · month
£0
Gross income · month
£0
Allowance £12,570
Your State Pension vs the tax-free allowance£12,547.60
Estimate only, for the 2026/27 tax year. Assumes the standard personal allowance and excludes the Marriage Allowance, blind person's allowance, Gift Aid, and the savings / dividend nil-rate bands. The State Pension is paid without tax deducted — see "How tax on the State Pension is collected" below. Not financial advice.
✦ The full picture
Do you pay tax on the State Pension?
Yes — the State Pension is taxable income. It just isn't taxed at source. HMRC counts it towards your total income for the year, and if that total is above your personal allowance (£12,570 in 2026/27), you pay income tax on the excess.
For years this rarely bit, because the State Pension sat comfortably below the allowance. That gap has almost closed. In 2026/27 the full new State Pension pays £241.30 a week — £12,547.60 a year, leaving just £22.40 of headroom. On the current triple-lock trajectory, the full new State Pension is projected to overtake the frozen allowance at the next uprating, which would make the State Pension itself partly taxable for the first time.
The squeeze in one line
The personal allowance is frozen at £12,570 until April 2031, while the triple lock keeps lifting the State Pension. HMRC now expects a record 10.2 million people aged 65+ to pay income tax in 2026/27 — about 700,000 more than last year.
The key numbers for 2026/27
Item
2026/27
Full new State Pension (weekly)
£241.30
Full new State Pension (annual)
£12,547.60
Personal allowance (frozen to April 2031)
£12,570
Headroom before tax
£22.40
Basic rate (20%) up to
£50,270
Higher rate (40%) up to
£125,140
Additional rate (45%) above
£125,140
Rates and thresholds shown are for England, Wales and Northern Ireland. Scotland sets its own bands — use the Scotland toggle in the calculator for a Scottish estimate.
Will I pay tax if the State Pension is my only income?
No. At £12,547.60, the full new State Pension is still £22.40 under the £12,570 allowance, so on its own it produces a £0 tax bill in 2026/27. But the margin is wafer-thin: any other taxable income — a small private pension, a few shifts of part-time work, or taxable savings interest — is taxed from the first pound, because your allowance is already almost entirely used up by the State Pension.
How tax on the State Pension is collected
The State Pension is always paid gross (no tax taken off). If you owe tax, HMRC usually collects it in one of two ways: by adjusting the tax code on another pension or job so slightly more is deducted there, or — if you have no other PAYE income — through a Simple Assessment letter after the tax year ends, which you pay directly. Either way, it's worth checking your tax code and keeping some headroom aside.
Frequently asked questions
Do you pay tax on the State Pension?
Yes. The State Pension is taxable income, though it is paid without tax deducted at source. If your total income for the year exceeds the personal allowance (£12,570 in 2026/27), you pay income tax on the excess.
Is the new State Pension taxable in 2026/27?
Yes. In 2026/27 the full new State Pension is £12,547.60, just below the £12,570 personal allowance, so on its own it isn't taxed — but any additional income is taxed immediately because the allowance is nearly used up.
How much is the full new State Pension in 2026/27?
£241.30 a week, which is £12,547.60 over the full year. Note that only just over half of recipients qualify for the full amount; many receive less.
Will I pay tax if the State Pension is my only income?
No. At £12,547.60 the full new State Pension is £22.40 below the £12,570 allowance, so it produces a £0 tax bill on its own in 2026/27. But any additional income is taxed from the first pound.
How is tax on the State Pension collected?
The State Pension is paid gross. HMRC collects any tax due by adjusting the tax code on another pension or job, or via a Simple Assessment letter if you have no other PAYE income — no Self Assessment return needed in most cases.
When will the State Pension exceed the personal allowance?
On the current triple-lock trajectory the full new State Pension is projected to overtake the frozen £12,570 allowance at the next uprating (April 2027), making part of the State Pension itself taxable for the first time. The exact date depends on the uprating figure confirmed each autumn.
See your whole retirement-income picture in WealthR
This calculator answers one question. WealthR's free app pulls your State Pension, private and workplace pensions, ISAs and savings together — so you can see your total taxable income, your tax drag, and how long your money lasts, all in one place.