Pension Income Tax Calculator
Enter any UK pension withdrawal — lump sum, UFPLS or drawdown — and see the tax HMRC will take, band by band, on top of your other income for 2026/27.
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Pension income is taxed the same way as salary once you're past the 25% tax-free allowance. It gets added to your State Pension, any earnings and any other taxable income, and the total decides which bands you fall into — 20%, 40% or 45% in England, Wales and Northern Ireland, or the 6 Scottish bands.
Two things trip people up: the emergency Month 1 tax code that providers apply to your first flexible withdrawal (usually leading to a big refund), and the fact that a single big lump can push you into a higher band or the 60% tax trap between £100k and £125,140. This calculator shows both.
Pension Income Tax Calculator
Enter what you're taking out and any other income already received this tax year — see the HMRC-style band breakdown, the extra tax the withdrawal actually triggers, and the Month-1 emergency tax you may be refunded.
State Pension, salary, other pensions, rental profit — anything taxable.
Your HMRC-style breakdown
Tax-free amount
£7,500
Taxable portion
£22,500
Extra tax on withdrawal
£4,496
15.0% of gross
| Band | Taxed at | Amount | Tax |
|---|---|---|---|
| Personal Allowance | 0% | £12,570 | £0 |
| Basic Rate (20%) | 20% | £22,478 | £4,496 |
| Total income tax due (all sources) | £4,496 | ||
Net cash from this withdrawal
£25,504
Gross £30,000 − tax £4,496
Your marginal tax rate now
20%
Every extra £1 withdrawn is taxed at this rate.
Provider will likely deduct
£102,675
Refund you should reclaim
£98,179
On your first flexible withdrawal HMRC's emergency Month 1 code applies — it treats the payment as if you'll receive it every month. Reclaim the overpayment with form P55 (drawdown continues), P53Z (pot fully emptied, still working) or P50Z (pot fully emptied, not working).
Splitting a big withdrawal across two tax years (e.g. March and April) uses two Personal Allowances and two basic-rate bands — this can save £6,000–£10,000 in tax on a £100k withdrawal. It also avoids triggering the 60% tax trap between £100k and £125,140. Based on 2026/27 rates; assumes no other allowances (Marriage Allowance, Blind Person's).
What this means for your retirement withdrawals
The single biggest tax lever you control is timing. Splitting one large withdrawal across two tax years unlocks a second Personal Allowance and a second basic-rate band — often saving £6,000–£10,000 on a £100k drawdown. If you have a spouse, transferring assets first so they can also draw against their bands doubles the saving again.
Watch the Money Purchase Annual Allowance. As soon as you take any taxable pension income (drawdown or the 75% slice of a UFPLS), your future contribution limit drops from £60,000 to £10,000 a year for life. If you're still working, take only the 25% PCLS tax-free cash and leave the rest crystallised in drawdown.
Pension Income Tax — FAQ
What's Next?
Pension Drawdown Tax Calculator
Model regular annual drawdown income and long-term pot depletion
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