Pension Withdrawal Tax Calculator
Tax on lump sums and drawdown incomeRuns in your browser
| Amount | |
|---|---|
| Taken from the pot | £20,000.00 |
| Tax-free | £5,000.00 |
| Taxable (added to your other income) | £15,000.00 |
| Income tax due on the withdrawal | £2,995.60 |
| You keep | £17,004.40 |
The first withdrawal is often taxed on an emergency "month 1" code, so more tax can be taken at first. You can claim it back from HMRC (forms P55, P50Z or P53Z) or it is corrected later in the year. Taking taxable money flexibly also cuts your future annual allowance to £10,000 (MPAA).
These are estimates based on 2026/27 rates and the inputs you give. Your actual position can differ (other income, benefits in kind, tax code changes, scheme rules). This is not financial or tax advice.
How it works
Worked example
Input: £100,000 pot, £20,000 taken as a UFPLS, £12,000 other income, England.
- Tax-free: 25% = £5,000; taxable: £15,000.
- On £27,000 total income, the extra tax is £2,886.
Result: You receive £17,114; £80,000 stays invested.
How to use
- 1Enter your pension pot.
- 2Choose lump sums (UFPLS) or tax-free cash plus drawdown.
- 3Enter how much you'll take and your other income this year.
- 4See the tax-free part, the income tax and what you receive.
FAQ
How much of my pension is tax-free?
Usually 25%, up to £268,275 in total (the Lump Sum Allowance). The rest is taxed as income in the year you take it, on top of your other income.
Why was I overtaxed on my first withdrawal?
Providers often use an emergency month 1 tax code, treating the payment as if you'd get it every month. Reclaim it from HMRC with form P55 (partial), P53Z (whole pot, still working) or P50Z (whole pot, not working).