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Pension tax calculator
Learn about how different sources of retirement income are taxed, and use our handy calculator to work out how much you'll have to pay.
Pension tax calculator 2025-26 and 2026-27
Our calculator shows how much tax you'll pay in the 2025-26 tax year, and the upcoming 2026-27 tax year, whether you take your whole pension pot, or a chunk of it as a lump sum, with a mind to taking further lump sums in future.
You can also see your expected bill for previous tax years by using the dropdown arrow. If you file a tax return, then your 2024-25 self-assessment must be done by 31 January 2026.
How much tax do I pay on a pension lump sum?
If you have a defined contribution pension and are 55 or over, you can take up to 25% of the pot as a tax-free lump sum (up to a maximum of £268,275). You can take more if you wish, but you'll pay income tax on anything above 25%.
If you leave money in your pension and take lump sums when you need to (known as 'uncrystallised funds pension lump sums'), 25% of each withdrawal will be tax-free, with the rest charged at your normal income tax rate.
- Find out more: what you need to know about taking a pension lump sum
How do I pay tax on my private pensions?
Income you receive from private pensions (either directly from a pension provider or from an annuity you bought with your pension savings) is paid with tax already deducted via the pay-as-you-earn (PAYE) system.
Your pension provider(s) will use your tax code to determine how much to deduct, but it's worth checking this to make sure you're paying the right amount of tax.
If you do not understand how your tax is being calculated, contact HMRC.
- Find out more: ways you can access your pension
Why have I paid emergency tax on my pension?
Tax on pension withdrawals is deducted at source via PAYE, rather than through a self-assessment tax return.
In many cases, the scheme provider will need to use an emergency tax code to do this. This code assumes you receive the same amount each month - and treats the sum you receive as one twelfth of your annual income. This means that more tax than is due will be deducted.
HMRC will eventually refund the overpaid tax, usually at the end of the tax year, but you can get your money back within 30 days by submitting but the relevant form to HMRC:
- P55 is for those who take out some but not all of their pension as a lump sum
- P50Z is for those who take out all of their pension and are no longer working
- P53Z is for those who take out all of their pension and are still working
Save on your tax bill
Members can use GoSimpleTax's tax calculator for £32.50 and avoid accountant fees
Get startedDo I pay tax on the state pension?
The state pension is subject to income tax, but the money you receive is paid without any tax being deducted.
If your total income from all sources, including the state pension, is greater than your tax-free allowance (£12,570), income tax will be due on the amount that exceeds it. This will normally be deducted from any private pension or earnings you have, which are paid through the PAYE system.
However, if you have no PAYE income, you'll have to complete a self-assessment tax return and pay any tax due directly to HMRC.