Are state pensions taxable income? 1.77K viewsTax0 Guest60 0 Comments Any idea if state pensions are taxable? Do you know how they are taxed and how I can calculate the tax for the state pensions? 1 AnswerActiveVotedNewestOldest 0 Guest60 Posted 0 Comments Yes, state and private pensions are fully taxable as if they were normal employment income. While they are laws that can help a pensioner decrease their tax liability, the general rule is that a state pension is taxable. Register or Login Search for: