Taxable and non-taxable income at a glance

Not all income is taxable. You can also receive some normally 'taxable' income 'tax-free'. The lists below will help you to work out what income counts as 'taxable' and 'non-taxable' - and what taxable income you can receive tax-free.

On this page:

What counts as taxable income?

Income from employment

  • Includes income from full, part-time and temporary employment.
  • If you get perks or benefits from your employer these may also be taxable.

Taxable company benefits - learn more

Income from self employment/partnerships

Profits you make from working for yourself as a sole trader or partner.

Pension income

  • State Pension.
  • Personal or company pensions.
  • Retirement annuity.

Interest on savings

  • Bank and building society interest - not including Individual Savings Accounts (ISAs)
  • National Savings and Investments accounts and bonds.

Investment income

Dividends on company shares - not including dividend income from ISAs.

State benefits

The most common taxable state benefits are:

  • Carer's Allowance
  • Jobseeker's Allowance
  • Employment and Support Allowance - 'contribution' based (if you have paid enough National Insurance contributions)
  • Incapacity Benefit - from week 29
  • Weekly Bereavement Allowance

Read the full list of taxable state benefits

Rental income

  • From a lodger in your only or family home if more than £4,250 a year (£2,125 if split jointly).
  • From a second property.

Other taxable income

  • Pensioner bonds.
  • Trust income.

What counts as non-taxable income?

State benefits

The most common non-taxable state benefits are:

  • Disability Living Allowance
  • Attendance Allowance
  • Lump sum Bereavement Payments
  • Pension Credit
  • Free TV licence for over 75s
  • Winter Fuel Payments and Christmas Bonus
  • Housing Benefit
  • Employment and Support Allowance - income based (if you haven't paid enough National Insurance contributions)
  • Income Support - certain payments
  • Child Benefit
  • Guardian's Allowance
  • Maternity Allowance
  • Industrial Injuries Benefit
  • Severe Disablement Allowance
  • War Widow's Pension
  • Young Person's Bridging Allowance

Read the full list of non-taxable state benefits

Interest on savings

  • All ISAs.
  • Savings Certificates.

Rents

  • First £4,250 a year from a lodger in your only or family home - £2,125 if split jointly.

Tax Credits

  • Working Tax Credit.
  • Child Tax Credit.

Premium Bonds

Wins from Premium Bonds are free from UK Income Tax and Capital Gains Tax.

If you have income that is not shown above

If you have income that is not shown above, please contact HM Revenue & Customs (HMRC) by following the link below.

Contact HMRC

Taxable income that you can receive tax-free

Almost everyone is entitled to receive a certain amount of taxable income tax-free during the tax year, this is called the Personal Allowance.

Personal Allowance

If you're certified blind and on a local authority register of blind persons, or if you live in Scotland or Northern Ireland and you are unable to perform any work for which eyesight is essential, you can claim Blind Person's Allowance. As with the Personal Allowance, this is an amount of taxable income you can receive during the tax year without paying tax.

Blind Person's Allowance

More useful links

Income Tax allowances and reliefs