The Christian aid charity said the fall in income, from £70.3m in 2011/12, was due to reduced emergency appeal income and a fall in institutional funding, which comes from governments.
Emergency appeal income for the charity fell from £8.1m in 2011/12 to £3.8m in 2012/13. Institutional funding dropped from £24.1m to £18.6m during the same period.
Tearfund is one of 14 members of the Disasters Emergency Committee and its income from this source fell from £4.7m in 2011/12 to £3.3m.
Legacy income at the charity also fell from £4.2m to £3.8m in 2012/13.
But Tearfund said its expenditure was down by 6.1 per cent to £61.1m. The charity said the fall in its expenditure reflected reduced spending on disaster response work.
It is one of several members of the DEC recently to report a fall in income.
Merlin, the medical relief charity that was taken over by Save the Children in July, said its income to the end of 2012 dropped by 12 per cent from £68.9m to £60.9m. It attributed the drop in income to there having been "no significant emergencies" in 2012.
Tearfund’s accounts say that the charity remains in a stable financial position with reserves "at the top end" of its target range of between £4m and £6m, which represents approximately one month of the charity’s usual expenditure.
The accounts say that Matthew Frost, the charity’s chief executive, received a salary of £94,000 in 2012/13 including pension and benefits, up from £92,000 in the previous year.