Income Tax: introduction (2024)

State benefits that are taxable

The most common benefits that you pay Income Tax on are:

  • Bereavement Allowance (previously Widow’s pension)
  • Carer’s Allowance or (in Scotland only) Carer Support Payment
  • contribution-based Employment and Support Allowance (ESA)
  • Incapacity Benefit (from the 29th week you get it)
  • Jobseeker’s Allowance (JSA)
  • pensions paid by the Industrial Death Benefit scheme
  • the State Pension
  • Widowed Parent’s Allowance

Tax-free state benefits

The most common state benefits you do not have to pay Income Tax on are:

  • Attendance Allowance
  • Bereavement support payment
  • Child Benefit (income-based - use the Child Benefit tax calculator to see if you’ll have to pay tax)
  • Child Tax Credit
  • Disability Living Allowance (DLA)
  • free TV licence for over-75s
  • Guardian’s Allowance
  • Housing Benefit
  • Income Support - though you may have to pay tax on Income Support if you’re involved in a strike
  • income-related Employment and Support Allowance (ESA)
  • Industrial Injuries Benefit
  • lump-sum bereavement payments
  • Maternity Allowance
  • Pension Credit
  • Personal Independence Payment (PIP)
  • Severe Disablement Allowance
  • Universal Credit
  • War Widow’s Pension
  • Winter Fuel Payments and Christmas Bonus
  • Working Tax Credit
Income Tax: introduction (2024)
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