For that reason, those with no other income have never owed any tax on their state pension payments alone, apart from in a few specific circumstances like the pre-97 pension.

However, that could be set to change from 2027 following the Autumn Budget announcements on Wednesday.

Chancellor Rachel Reeves confirmed two key things in her speech: that the Triple Lock is here to stay, and that Income Tax thresholds have been frozen for another three years, until financial year 2030-31.

In 2026, the Triple Lock will lift state pension payments to £12,548 per year, just £22 shy of the £12,570 Personal Allowance threshold.

Then, in 2027, new state pensioners with a full National Insurance record would be guaranteed to owe Income Tax on their state pension, even if they have no other income, as the Triple Lock will be at least 2.5% (and probably more), pushing the income beyond the threshold.

In 2027, assuming a minimum 2.5% rise, new state pensioners will get another £608.58 per year. Added to £12,458 this makes a yearly income of £13,156. Of this, £586 is above the threshold, so 20% of this would be a £117.20 tax bill.

And, of course, the thresholds are frozen until 2031, so state pensioners will exceed this threshold unless a specific exemption for pensioners is announced before April 2027.

However, an announcement Ms Reeves made in her speech was that state pensioners will not need to complete Simple Assessments for HMRC to pay small tax bills, but the government has declined to share any more details yet on how the tax will be paid instead.

Mike Ambery, a retirement savings director at Standard Life that’s part of Phoenix Group, said: “The Government’s decision to extend the freeze on income tax thresholds until 2031 represents one of the most significant stealth tax rises in recent years. Originally introduced as a temporary measure, the freeze – combined with wage growth and inflation – will steadily push more earners into higher tax bands, reducing take-home pay and increasing the importance of tax-efficient saving.

“For pensioners, the picture is evolving. April’s increase will bring the full new State Pension to £12,547.60 per year, just below the frozen Personal Allowance of £12,570. From 2027–28, the State Pension is expected to exceed the allowance, meaning many retirees could technically owe Income Tax on the State Pension alone.

“However, the Government has confirmed plans to remove the need for Simple Assessments for pensioners whose sole income is the basic or new State Pension without increments, easing the administrative burden for this group. Details of how this will work will be set out next year, but the aim is to prevent small tax bills and reduce complexity for those with no other income.”

Regardless of how this works, state pensioners, as they always have, still could face even bigger tax bills for larger amounts, and the Personal Allowance freeze will push more pensioners, as it will push more workers, into paying tax.

Mr Ambery continues: “Despite this, pensioners with even modest private savings or workplace pensions will still face tax liabilities, and the freeze underlines the importance of planning. The State Pension remains below Pensions UK’s minimum retirement living standard by around £1,000 a year, so additional saving is still essential. There’s also a risk that frozen thresholds discourage private saving, as any extra income becomes taxable immediately.

“Pensions remain tax efficient. Contributions attract tax relief at your marginal rate, meaning those moving into higher bands could benefit from greater relief. With thresholds now locked until 2031, reviewing your pension strategy and making the most of available allowances is more important than ever.

“Ultimately, while the freeze helps the Government meet fiscal targets, it highlights the need for individuals to stay engaged with their long-term finances. Taking stock of pension pots and investment choices today can be a powerful way to protect future income.”