Can anyone tell me whether the Sate Pension is taxable, and should be included in the Personal Tax Allowance? The reason I'm asking is that Mum has been getting her State Pension since she was 60 - she's now 87. She hasn't worked since then. She has also been receiving a small pension linked to her employment since that time. When my dad died almost 12 years ago, she became the beneficiary of a small Widows and Orphans pension on which she has been paying tax. However, these two 'private pensions' only amount together to about £3000 a year. If the State pension is included as income in the Personal Tax Allowance of £10,000 a year, then I can understand it, but if not, then surely she shouldn't be paying any income tax at all? Not sure if I'm working it out correctly, so if one of you financial wizards out there can help, I'd be most grateful.