Is personal independence payment taxable?
Answered 17 March 2026
Personal Independence Payment (PIP) is not taxable. Here is the authoritative basis for that conclusion:
What the law says
Section 677(1) of the Income Tax (Earnings and Pensions) Act 2003 (ITEPA 2003) provides that no liability to income tax arises on the UK social security benefits listed in Table B. Personal Independence Payment — payable under the Welfare Reform Act 2012, section 77, and any corresponding Northern Ireland provision — is explicitly listed in that Table.
HMRC guidance / practice
HMRC's Employment Income Manual confirms that the benefits specified in Table B, Parts 1 and 2 of section 677(1) ITEPA 2003 are wholly exempt from tax, and expressly lists Personal Independence Payment among the benefits that are not taxable.
PIP is also disregarded (i.e. excluded from income) for the purposes of the tax credits income calculation.
In summary: PIP is wholly exempt from income tax by statute (ITEPA 2003, s.677(1), Table B) and is confirmed as non-taxable in HMRC guidance.
Citation sources
ncome-related employment and support allowance WRA 2007 Section 1(2)(b) Any provision made for Northern Ireland which corresponds to section 1(2)(b) of WRA 2007 Industrial injuries benefit (apart from industrial death benefit) SSCBA 1992 SSCB(NI)A 1992 Section 94 Section 94 Job start ETA 1973 Section 2 Payments made under the Parental Transitions Support scheme LGSA 2003 Section 20 Payments out of the social fund SSCB(NI)A 1992 Section 138 SSCBA 1992 Section 134 Payments to secure the provision
The following payments of social security payments are disregarded: An Attendance Allowance A Back to work bonus payable under the Jobseeker’s Act or Part 1 of the Welfare Reform Act 2007 A Bereavement support payment under Part 5 of the Pensions Act 2014 Child Benefit A Christmas bonus payable under section 148 of the Contributions and Benefits Act Council Tax Benefit Disability Living Allowance Personal Independence Payment Disabled Person’s Tax Credit Any discretionary housing payment paid un
UK social security benefits specified at Table B Parts 1 and 2 at section 677(1) ITEPA 2003 are wholly exempt from tax. The following benefits are not taxable: Adult Disability Payment, administered by the Scottish Government Attendance Allowance Bereavement Support Payment (see EIM76171) Best start grant Child Benefit Child Tax Credit Cold Weather Payments, see also Winter Fuel payment Council Tax Benefit, administered by local authorities Council Tax Rebate Discretionary Fund (including any co
Part 10 Social security income Chapter 5 UK social security benefits wholly exempt from income tax UK social security benefits wholly exempt from tax: Table B 677 1 No liability to income tax arises on the United Kingdom social security benefits listed in Table B. TABLE B—PART 1 BENEFITS PAYABLE UNDER PRIMARY LEGISLATION AND NORTHERN IRELAND WELFARE SUPPLEMENTARY PAYMENTS etc Social security benefit Payable under Adult Disability Payment SS(S)A 2018 Sections 24 and 31 Attendance allowance SSCBA