Carer's Allowance is taxable, according to Carers UK. Based on information provided by the organization, carers will only be obligated to pay tax on the sum if they have additional sources of income that are taxable, such as an occupational pension or earnings.
On its own, the Carer's Allowance falls below the ceiling for having to pay tax. In addition, this allowance is not determined by the income or savings of the carer, according to Carers UK, although earnings may influence the carer's entitlement. Carer's UK also reports that the carer's national insurance record does not affect payment of a Carer's Allowance.