How much tax on your pension withdrawal?

Model a SIPP or pension drawdown for the 2026/27 tax year: take 25% tax-free, then see the income tax on the rest, what you’re left with, and your effective rate.

Gross amount taken from the pension

Salary, State Pension, other pensions

Income tax

£3,486

on this withdrawal

You receive

£36,514

after tax

Effective rate

8.7%

of the withdrawal

How it breaks down

Tax-free portion (25%)£10,000
Taxable portion£30,000
Income tax on the taxable portion£3,486

The taxable portion is added on top of your other income, so a large one-off withdrawal can be taxed at a higher rate than your normal band. Spreading withdrawals across tax years often lowers the total tax.

Plan your drawdown, tax and all

Northing models how to fund your retirement spending across ISAs and pensions tax-efficiently — using your real pots, the live tax bands and the State Pension — so you can see the most tax-efficient way to draw.

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Common questions

Figures use the 2026/27 tax year. This tool gives estimates for guidance only and is not financial or tax advice. It uses England, Wales and Northern Ireland income tax bands and assumes the withdrawal falls in a single tax year. Always verify the current rules on GOV.UK: Tax when you get a pension. Northing accepts no liability for decisions made on the basis of these estimates.