State pension could rise to £12,600 next year - dragging millions into paying tax

The triple lock could trigger a 5.5% increase to the state pension in April 2026, economists suggest. This means the full state pension will breach the tax-free personal allowance

Pensive older woman using laptop paying bills online at home
(Image credit: Getty Images)

Retirees may have to pay tax on their state pension as early as next year, according to new forecasts.

The full state pension could soar by 5.5% to reach £12,631 a year in April 2026, due to the triple lock.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.