Motor output mostly depends on sensory input, which also can be affected by action. To further our understanding of how tactile information is processed in the primary somatosensory cortex (S1) in dynamic environments, we recorded neural responses to tactile stimulation of the hand in three awake monkeys under arm/hand passive movement and rest. We found that neurons generally responded to tactile stimulation under both conditions and were modulated by movement: with a higher baseline firing rate, a suppressed peak rate, and a smaller dynamic range during passive movement than during rest, while the area under the response curve was stable across these two states. By using an information theory-based method, the mutual information between tactile stimulation and neural responses was quantified with rate and spatial coding models under the two conditions. The two potential encoding models showed different contributions depending on behavioral contexts. Tactile information encoded with rate coding from individual units was lower than spatial coding of unit pairs, especially during movement; however, spatial coding had redundant information between unit pairs. Passive movement regulated the mutual information, and such regulation might play different roles depending on the encoding strategies used. The underlying mechanisms of our observation most likely come from a bottom-up strategy, where neurons in S1 were regulated through the activation of the peripheral tactile/proprioceptive receptors and the interactions between these different types of information.