UK Tax Tools

Pension Tax Calculator UK

Add your State Pension, private or workplace pension and any other taxable income. The calculator applies the 2026/27 Personal Allowance and the correct Income Tax bands for the rest of the UK or Scotland.

Your annual retirement income

Annual amount paid before tax.

Annuity, defined benefit or taxable drawdown income.

Work, property or taxable benefits. Exclude ISA withdrawals.

Total Income Tax

£2,395.60

Tax attributable to pensions

£2,395.60

Pension income is stacked on top of your other income, so this is the marginal tax the pension adds.

Net annual income

£22,152.40

Net monthly income

£1,846.03

Income Tax breakdown
Gross income
£24,548
Personal Allowance
£12,570
Taxable income
£11,978
BandIncomeTax
Basic (20%)£11,978£2,395.60

Pension income does not attract employee National Insurance. Savings interest and dividends use separate allowance and rate rules.

Share

What counts as pension income?

  • State Pension: taxable but normally paid gross by DWP.
  • Defined benefit pension: taxable through PAYE.
  • Annuity income: taxable through PAYE.
  • Taxable drawdown: included after any tax-free pension cash.

What belongs elsewhere?

Savings interest has its own starting-rate band and Personal Savings Allowance. Dividends also use separate rates. Model those with the savings-interest tax calculator. For a one-off pension payment, use the pension lump sum tax calculator.

Frequently asked questions

Is the State Pension taxable?
Yes. The State Pension is taxable income, although DWP pays it without deducting tax. The full new State Pension is about £12,548 a year in 2026/27, so it uses nearly all of the standard £12,570 Personal Allowance.
How is tax collected from my State Pension?
HMRC normally adjusts the PAYE tax code on a private pension or employment income to collect tax due on the State Pension. If there is no PAYE source, HMRC may issue a Simple Assessment or require another payment route.
Do pensioners pay National Insurance?
Pension income does not attract employee National Insurance. If you continue working after State Pension age, your pension remains outside NI and your employment treatment depends on the State Pension age rules.
Does this include tax on pension lump sums?
No. This calculator models recurring annual pension income. Use the pension lump sum calculator for UFPLS or tax-free cash, because part of a lump sum may be tax-free and a first payment may be emergency-taxed.

Official sources

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Last updated 12 August 2026Tax year 2026-27

Data sources: https://www.gov.uk/tax-on-pension https://www.gov.uk/income-tax-rates https://www.gov.uk/scottish-income-tax

This tool is general information only, not financial advice.

Reviewed by UK Tax Tools Editorial Desk

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