Pension Tax Calculator (2025/26)
Estimate the tax you may pay when withdrawing money from your pension pot.
Estimates only — based on 2025/26 UK income tax bands.
Ready
| Description | Amount (£) |
|---|---|
| Tax-Free Amount | £0.00 |
| Taxable Amount | £0.00 |
| Estimated Tax Due | £0.00 |
| Net Received | £0.00 |
Pension Tax Rates & Allowances 2025/26
Income Tax Bands (England, Wales & Northern Ireland)
| Band | Income Range | Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | Over £125,140 | 45% |
Pension Lump Sum Rules
| Tax-Free Lump Sum | Up to 25% of your total pension pot |
|---|---|
| Tax on remainder | Taxed as normal income using rates above |
Types of Pension Income Taxed
- State Pension
- Private pension (drawdown)
- Annuity income
- Company/Workplace pensions
- Taxable part of lump sums
Pension providers usually apply an emergency tax code to the first lump sum withdrawal.
How Pension Tax Works in 2025/26
Pension income is taxed in the same way as salary. You receive a Personal Allowance, and your total pension income (State + private) determines your tax band.
- 25% tax-free lump sum when you access your pension.
- State Pension is taxable but paid without tax deducted.
- Private pension withdrawals are taxed via PAYE.
- Large withdrawals can push you into higher tax bands.
- You may need to reclaim overpaid tax using forms P55, P50Z or P53Z.
This calculator applies all HMRC pension tax rules for 2025/26.
Pension Tax Examples (2025/26)
Pension Income: £15,000
- Personal Allowance covers £12,570
- Taxable: £2,430
- Tax @ 20%: £486
- Net income: £14,514
Pension Income: £40,000
- Falls fully in basic rate band
- Total tax: ~£5,486
- Net: ~£34,514
Withdraw £60,000 Lump Sum
- Tax-free: £15,000 (25%)
- Taxable: £45,000
- Tax: ~£11,500 (mix of basic + higher)
- Net received: ~£48,500
Frequently Asked Questions
Yes — the State Pension counts as taxable income, even though it is paid without tax deducted.
Normally 25% of your total pension pot can be taken tax-free when you first access it.
This Pension Tax Calculator uses official HMRC 2025/26 tax bands, State Pension rules and private pension withdrawal rules including lump-sum taxation.