# New pensioner tax allowance shields state pension income up to £13,036

- URL: https://talkfuse.com/story/poorest-pensioners-will-be-let-off-income-tax-under-new-rules-revealed-in-budget-but-some-face-a-53-sting/
- Published: 2026-10-28T16:35:51+00:00
- Updated: 2026-10-28T16:53:05+00:00
- Original publisher: Daily Mail (publisher lean: Right)
- Original article: https://www.dailymail.com/money/pensions/article-16245381/Poorest-pensioners-let-income-tax-new-rules-revealed-Budget-face-53-sting.html?ns_mchannel=rss&ns_campaign=1490&ito=1490
- Topics: World

## Key points

- Pensioners with income up to £13,036 will be exempt from income tax.
- A taper could mean a 53 per cent effective rate for some.
- Around 200,000 pensioners may fall within the affected income range.

## Summary

The Budget will introduce a higher income tax allowance for people over state pension age, so pensioners with total income up to the full new state pension will not pay income tax. The change is intended to prevent people whose only income is the state pension from facing tax as it rises above the standard allowance next April.

The new allowance will be £13,036, matching the projected full new state pension, and will rise with it until at least April 2030. For pensioners earning between £13,037 and £13,319, the allowance will be withdrawn by £1 for every £3 of extra income, creating an effective 53 per cent tax rate; around 200,000 people may be affected. The maximum tax saving is about £94 in 2027-28, while some people on older state pension arrangements or higher payments may not qualify for the relief.

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Summarised by TalkFuse (https://talkfuse.com/). Quote the original publisher for the reporting and link this page for the summary and discussion.