Pension Tax Calculator

Free UK Calculator

Pension Tax Calculator UK

Calculate your tax liability on pension and retirement income.

Free, accurate calculator with no signup required.

Income Tax Planner

Enter your pension and income sources to calculate your tax liability and net retirement income:

Enter Your Income Sources

£
£

Current full: £11,502

£

Total Gross Income

£46,502

Gross Income

£46,502

All sources combined

Personal Allowance

£12,570

Tax-free amount

Taxable Income

£33,932

Subject to tax

Total Tax & NI

£10,858.24

23.35% rate

Income Tax

£6,786.4

20-45% depending on band

National Insurance

£4,071.84

12% and 2% rates

Gross vs Net

Gross Income:£46,502
Less: Tax & NI:-£10,858.24
Net Income:£35,643.76

Monthly Breakdown

Monthly Gross:£3,875.17
Monthly Tax/NI:-£904.85
Monthly Net:£2,970.31

Disclaimer: This calculator provides estimates for informational purposes only. Tax rates and allowances are based on 2024/2025 UK tax year. It does not constitute professional tax advice. Always consult with a qualified tax advisor or accountant for accurate tax planning.

How to Use

Getting Started

1

Enter Income Sources

Add pension drawdown, state pension, and other income

2

View Tax Breakdown

See income tax, National Insurance, and total tax

3

Plan Your Finances

Understand your net income and tax rate

Key Tax Information

Personal allowance: £12,570 (2024/2025)
Income tax: 20%, 40%, 45% by band
National Insurance: 12% and 2% rates
State pension is taxable if income exceeds allowance

Frequently Asked Questions

Is pension income taxable?
Yes, both private pension drawdown and state pension are subject to income tax if your total income exceeds the personal allowance (£12,570 in 2024/2025). Pension drawdown is also subject to National Insurance contributions.
What is the personal allowance?
The personal allowance is the amount of income you can earn tax-free each year. For 2024/2025, it's £12,570. Income above this amount is subject to income tax.
What are the different tax rates?
UK income tax rates are progressive: 20% on basic rate income (£12,570-£50,270), 40% on higher rate income (£50,270-£125,140), and 45% on additional rate income (above £125,140).
Do I need to pay National Insurance on pension?
State pension is not subject to National Insurance, but private pension drawdown is. National Insurance is charged at 12% on income between £12,570-£50,270 and 2% above that.
Can I reduce my tax liability?
There are various tax planning strategies available, such as splitting income with a spouse, deferring state pension, and using your personal savings allowance. Consult a qualified tax advisor for personalized advice.