State Pensioners Will Not Pay Income Tax, Government Confirms

By the Editorial Team · Saturday, July 25, 2026

The government has confirmed that individuals receiving only the state pension will remain exempt from paying income tax despite the pension amount nearing the current tax threshold. This decision ensures that basic pensioners will not face tax liabilities as their pension rises during the upcoming fiscal year.

The government has confirmed that individuals whose sole income is the state pension will not be required to pay income tax. This announcement comes amid concerns that the new state pension, currently set at £12,547 annually, is approaching the income tax threshold of £12,570 and may surpass it in the next fiscal year starting in April.

A Treasury spokesperson emphasized that recipients of the basic or new state pensions, without any additional increments, will continue to be exempt from income tax. The government reaffirmed its commitment to maintaining this exemption throughout the current parliamentary term.

The confirmation aims to alleviate worries among pensioners about potential tax liabilities as pension amounts increase. The Treasury’s assurance ensures that the basic state pension income will remain protected, preventing any immediate tax obligations on pensioners relying solely on this income.

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