Which state benefits are taxable? A look at the FULL LIST of common tax-free ...

The amount of Income Tax a person pays will depend on their taxable income. Income tax is not payable on the first £12,500 of a person’s taxable income in the UK. This is known as the Personal Allowance. Further taxable income is then taxed at the rate according to the income tax band.

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Some taxpayers may be eligible for other types of tax-free allowances - such as a person’s first £1,000 of income from self-employment, or of a property they rent.

Some state benefits are taxable, while others are not, and the government website states which types of benefits count as taxable income, as well as those which are tax-free.

State benefits that are taxable

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

The State Pension Jobseeker’s Allowance (JSA) Carer’s Allowance Contribution-based Employment and Support Allowance (ESA) 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 allowance: Which state benefits are taxable? Pictures of couple looking at financesTax allowance: Which state benefits are taxable? Some state benefits are tax-free (Image: GETTY)

READ MORE: Is Universal Credit taxable? How to check if benefit payments may mean you owe income tax

The website also explains that Income Tax is not payable on a number of common state benefits.

This includes:

read more.....

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