Savings tax calculator
See how much Income Tax you pay on savings interest outside ISAs, this tax year and from 6 April 2027, when the rates on savings interest rise to 24%, 44% and 49%. Enter your other income and your interest: your tax band and allowances are worked out for you.
Before tax: wages, pension, rental and self-employed profit. Leave out savings interest and dividends.
From bank and building society accounts. ISA interest is always tax-free, so leave it out.
Tax on your savings interest
2026/27
£200
At 20%, 40% or 45%
From 2027/28
£240
At 24%, 44% or 49%
Change from April 2027
+£40
A year, on the same interest
Interest you keep tax-free
£1,000
Out of £2,000
With this income you are a basic rate taxpayer, so your Personal Savings Allowance is £1,000.
- Personal Savings Allowance, 0%
- £1,000
- Taxed at 20%, then 24%
- £1,000
How this works
- HMRC taxes your other income first and your savings interest on top. Any of your £12,570 Personal Allowance that your other income does not use covers interest first.
- Next comes the starting rate for savings: up to £5,000 of interest at 0%. It shrinks pound for pound as your other income rises above the Personal Allowance, and is gone once it reaches £17,570.
- Then the Personal Savings Allowance: £1,000 for basic rate taxpayers, £500 for higher rate and nothing for additional rate. Your band counts all your income, including the interest.
- Interest above all that is taxed at the rate of the band it falls in: 20%, 40% or 45% in 2026/27, and 24%, 44% or 49% from 6 April 2027. The higher rate starts at £50,270 of income and the additional rate at £125,140, and these thresholds are frozen until 5 April 2031.
- Above £100,000 of income, including interest, your Personal Allowance shrinks by £1 for every £2, and it is gone at £125,140.
- Figures are rounded to the nearest pound.
What it leaves out
This shows the tax on the interest itself. It leaves out dividends, and Gift Aid donations and personal pension contributions, which extend your basic rate band and can lower the tax. Between £100,000 and £125,140 of income, interest also shrinks your Personal Allowance, which raises the tax on your other income; that extra tax is not shown here. Scottish taxpayers pay the same UK rates on savings interest, so the calculator works for them too.
Worked examples
The people in these examples are illustrative, not real.
- Sam earns £30,000 and gets £2,000 of interest. As a basic rate taxpayer, £1,000 is covered by the Personal Savings Allowance and the other £1,000 is taxed: £200 in 2026/27, rising to £240 from 2027/28.
- Asha earns £45,000 and gets £10,000 of interest. The interest takes Asha into the higher rate band, which comes with a £500 allowance. Of the rest, £4,770 still fits in the basic rate band and £4,730 is taxed at the higher rate: £2,846 in 2026/27, rising to £3,226 from 2027/28.
- Joan has a £10,000 pension and gets £8,000 of interest. Unused Personal Allowance covers £2,570, the starting rate for savings £5,000 and the Personal Savings Allowance the last £430, so the tax is £0 in either year.
Interest inside an ISA is always tax-free and does not use any of these allowances. Compare Cash ISA rates, see where savings above your ISA allowance can go, or use the ISA vs savings account calculator to compare a tax-free rate with a taxable one.
Tax treatment depends on your circumstances and may change. This is not financial advice.
Questions people ask
How much savings interest is tax-free?
Basic rate taxpayers can earn £1,000 of interest a year tax-free under the Personal Savings Allowance, higher rate taxpayers £500 and additional rate taxpayers nothing. If your other income is low, the starting rate for savings can make up to £5,000 more tax-free, and any Personal Allowance your other income does not use covers interest too. Interest inside an ISA is always tax-free and does not count.
What are the savings tax rates from April 2027?
From 6 April 2027, tax on savings interest rises by a further 2 percentage points in every band, announced in the Budget on 28 October 2026 on top of the 2 points announced in 2025: to 24%, 44% and 49%, from 20%, 40% and 45%. The Personal Savings Allowance and the starting rate for savings are not changing. See savings tax 2027.
Do I need to tell HMRC about my savings interest?
Usually not. After the tax year ends, your bank or building society tells HMRC how much interest it paid you. If you are employed or get a pension, HMRC usually collects any tax through your tax code; if it cannot, it may send a Simple Assessment letter. If you already send a Self Assessment tax return, report your interest there. If your interest is more than £10,000, you need to report it on a Self Assessment tax return.
Why does my interest change my Personal Savings Allowance?
Your allowance depends on your tax band, and your band counts all your income, including the interest. So interest that takes your income over the £50,270 higher rate threshold makes you a higher rate taxpayer, with a £500 allowance instead of £1,000.
How is interest on a joint account taxed?
HMRC splits the interest on a joint account equally between the account holders, so enter your share. Contact HMRC if you think it should be split differently.
Do Scottish taxpayers pay the same tax on savings interest?
Yes. Savings interest is taxed at the same UK-wide rates and bands for everyone, including Scottish taxpayers, even though Scottish income tax rates apply to wages and pensions.