How much tax do I pay on my pension income?
Pensioners do not receive a higher personal allowance for their income than other age groups. The amount you can receive tax-free before you start paying income tax on your pension, also known as a tax free personal allowance, is £12,570 for 2023/24. You will pay basic rate tax (20%) on your total income between £12,570 and £50,270. This means you can earn up to £50,270 before you start paying higher rate tax.
If you are married or in a registered civil partnership and you and/ or your spouse or civil partner were born before 6 April 1935, you can also claim a married couple’s allowance (MCA).
If you have any further questions around how tax could affect your retirement, you can find additional support on the Money Helper site.
