HMRC has outlined key tax rules for state pension payments after a query about deductions

HMRC has clarified the tax rules surrounding state pension payments, following an enquiry about deductions applied to those payments.

A state pensioner contacted the tax authority through social media with a question, asking: “Where can I find a monthly statement of my state pension showing the payment and deductions?” With upcoming changes on the horizon, now is an opportune moment to review your state pension arrangements.

The state pension is set to rise by 4.8 per cent from April, boosting the full new state pension from £230.25 per week to £241.30 per week. In response to the query, HMRC outlined the key rules to bear in mind, telling the taxpayer: “State pension is paid by the Department for Work and Pensions (DWP) and no tax is deducted at source.

“Your pension payments do appear only on your bank statements – DWP pays the same amount every four weeks.”

This means those receiving the full new state pension will receive £965.20 each payment period under the new rates, reports the Mirror. Those on the full basic state pension will receive £184.90 per week, or £739.60 every four-week payment period, with payments typically issued in arrears.

The day your state pension is paid depends on the final two digits of your National Insurance (NI) number.

Those preparing for retirement should also take note of another significant change coming into effect from April 2026, when the state pension age will begin rising from 66, gradually increasing to reach 67 between April 2026 and April 2028.

Laws have also been passed to implement a further increase to 68, set to take place between 2044 and 2046. You can check your projected state pension entitlement by using the forecast tool available on the Government website.