How much tax will I pay on a pension withdrawal?
Enter what you want to take out and your other income this tax year to see the tax and what you keep.
Other income means the state pension, wages, other pensions and rent from 6 April to 5 April. The full new state pension is £12,548 a year. Nothing you type is sent anywhere.
Taken as two halves, one in this tax year and one in the next, with the same other income and today's rates, the tax would be £0 in total, £486 less.
Good to know
- Up to a quarter of each pension is usually tax-free, with £268,275 in total across all your pensions. The rest is taxed as income in the tax year you take it.
- Providers often use an emergency tax code on a first withdrawal. Overpaid tax can be claimed back with form P55, P53Z or P50Z. If not claimed, HMRC normally corrects it after the tax year ends. Emergency tax and how to claim it back
- Taking taxable money from a pension usually limits pension payments with tax relief to £10,000 a year. Taking only tax-free cash doesn't.
- Money taken from a pension can reduce means-tested benefits such as Pension Credit.
- This is for pensions you can take money from as you choose. A final salary pension, or a policy with a guaranteed annuity rate, pays differently, and moving one to take a lump sum loses the guarantee.
- Rates are for 2026/27. Personal allowance £12,570. Scottish taxpayers pay Scottish rates on pension income.
See the tax over your whole retirement, year by year, with the state pension and every pot: open the calculator. Guides: Pension drawdown tax, Taking your 25% tax-free cash
For illustration only. This calculator lets you look at your own figures. It doesn't give financial advice. Before acting on anything here, get free, impartial guidance from Pension Wise, or speak to a regulated financial adviser.