The state pension is projected to increase by £500, potentially reaching over £13,000 annually from next spring. This rise could push the state pension above the basic rate income tax threshold.
The state pension is projected to see an increase of £500, potentially reaching an annual total of over £13,000 starting next spring. This anticipated rise could mean that the state pension will exceed the current basic rate income tax threshold of £12,570.
For individuals whose state pension is not their only source of income, a portion of this increase may be subject to income tax.
What this means for you: If your state pension is not your sole income, you may see some of the increased amount clawed back in income tax.
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