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What State Benefits Taxable?

Only certain state benefits are taxable, these include:

  • 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

Other state benefits are not taxable and these include:

  • Housing Benefit
  • income-related Employment and Support Allowance (ESA)
  • Income Support – though you may have to pay tax on Income Support if you’re involved in a strike
  • Working Tax Credit
  • Child Tax Credit
  • Disability Living Allowance
  • Child Benefit (income-based – try the Child Benefit tax calculator to see if you’ll have to pay tax)
  • Personal Independence Payment
  • Guardian’s Allowance
  • Attendance Allowance
  • Pension Credit
  • Winter Fuel Payments
  • Free TV licence for over-75s
  • Lump-sum bereavement payments
  • Maternity Allowance
  • Industrial Injuries Benefit
  • Severe Disablement Allowance
  • Universal Credit
  • War Widow’s Pension

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Anita Forrest
About Anita Forrest

Anita Forrest is a Chartered Accountant turned entrepreneur who helps the self-employed gain financial confidence when it comes to running the numbers side of their business and filing tax returns with guides, templates and resources on the Go Self-Employed website.