Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleA record 10 million over-65s are projected to pay income tax this year in the UK, a significant increase attributed to the government's continued freeze on tax thresholds. By 2026/27, 10.2 million over-65s, including 9.5 million of state pension age, will be taxpayers, meaning seven out of ten pensioners now pay income tax. This rise of nearly 3 million over-65s paying tax since 2022 is a direct consequence of the freeze on tax thresholds, which Rachel Reeves extended until 2031. The fixed tax-free personal allowance of £12,570 has created a 'fiscal drag,' pulling more people into paying tax or higher brackets as average earnings increase, and is expected to raise £8bn for the Treasury. While those solely on the full state pension will not pay income tax, economists criticise the threshold freeze as an inefficient way to raise revenue, disproportionately affecting low-income individuals and pensioners with small private pensions. In fullRecord 10 million over-65s to pay income tax amid threshold freezeMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
Why the number of over-65s paying income tax is set to hit 10 million
Jump to contentThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged inAllNewsSportCultureLifestyleA record 10 million over-65s are projected to pay income tax this year in the UK, a significant increase attributed to the government's continued freeze on tax thresholds. By 2026/27, 10.2 million over-65s, including 9.5 million of state pension age, will be taxpayers, meaning seven out of ten pensioners now pay income tax. This rise of nearly 3 million over-65s paying tax since 2022 is a direct consequence of the freeze on tax thresholds, which Rachel Reeves extended until 2031. The fixed tax-free personal allowance of £12,570 has created a 'fiscal drag,' pulling more people into paying tax or higher brackets as average earnings increase, and is expected to raise £8bn for the Treasury. While those solely on the full state pension will not pay income tax, economists criticise the threshold freeze as an inefficient way to raise revenue, disproportionately affecting low-income individuals and pensioners with small private pensions. In fullRecord 10 million over-65s to pay income tax amid threshold freezeMore bulletinsThank you for registeringPlease refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in
