Tax rates and allowances
List of Tax-free and taxable state benefits in UK
Published 7 June 2018
Archived article from 2018. Rates, thresholds and rules may have changed since then. Ask us for the current position before you act on it.
State benefits that are taxable
The most common benefits that you pay Income Tax on are:
- the State Pension
- Jobseeker’s Allowance
- Carer’s Allowance
- Employment and Support Allowance (contribution based)
- Incapacity Benefit (from the 29th week you get it)
- Bereavement Allowance
- pensions paid by the Industrial Death Benefit scheme
- Widowed Parent’s Allowance
- Widow’s pension
Tax-free state benefits
The most common state benefits you don’t have to pay Income Tax on are:- Housing Benefit
- Employment and Support Allowance (income related)
- Income Support - though you may have to pay tax on Income Support if you’re involved in a strike
- Working Tax Credit
- Child Tax Credit
- Disability Living Allowance
- Child Benefit (income based - use the Child Benefit tax calculator to see if you’ll have to pay tax)
- Personal Independence Payment (PIP)
- Guardian’s Allowance
- Attendance Allowance
- Pension Credit
- Winter Fuel Payments and Christmas Bonus
- free TV licence for over-75s
- lump-sum bereavement payments
- Maternity Allowance
- Industrial Injuries Benefit
- Severe Disablement Allowance
- Universal Credit