⏳ Reading Time: 9 minutesPension income is taxable in the UK. Whether it is your State Pension, a workplace scheme or a private pension, the income you receive counts towards your annual taxable income.
At a Glance
Pension income in the UK is taxable once your total income exceeds the personal allowance (£12,570 in 2026/27, frozen since 2021/22).
The State Pension is included in your taxable income, even though tax is not deducted at source.
You can usually take up to 25% of your pension pot tax-free from age 55 (rising to 57 by 2028).
