Savings Interest Tax Calculator
Enter your other taxable income and the interest you earn outside an ISA. See which allowances apply and any tax due.
Uses the 2026/27 UK tax year figures for England, Wales and Northern Ireland, checked against GOV.UK on 18 October 2026. This is an estimate to help you plan and not advice.
Worked examples
A basic rate taxpayer
£30,000 other income, £2,000 interest
£200 tax
The first £1,000 is covered by the allowance, and the other £1,000 is taxed at 20%.
A higher rate taxpayer
£60,000 other income, £1,500 interest
£400 tax
The allowance is only £500, and the other £1,000 is taxed at 40%.
About Savings Interest Tax Calculator
Most people can earn some savings interest without paying tax, but how much depends on your other income. Interest is covered first by any personal allowance you have not used up. Then the starting rate for savings applies, which gives up to £5,000 of interest with no tax to people with low other income. After that comes the Personal Savings Allowance: £1,000 for basic rate taxpayers, £500 for higher rate taxpayers and nothing for additional rate taxpayers.
Enter your other taxable income, such as wages, pensions or profits, and the interest you earn outside an ISA. The page shows how much interest each allowance covers, the interest left over and the tax on it at 20%, 40% or 45%. It uses the 2026/27 figures for England, Wales and Northern Ireland. Interest inside an ISA is ignored.
How to use Savings Interest Tax Calculator
- Enter your other income for the year, before the personal allowance.
- Enter your interest from accounts outside an ISA.
- Check which allowances cover the interest.
- Read the tax due and the interest after tax.
Common uses
- Checking whether a savings balance will create a tax bill
- Deciding whether to use an ISA
- Understanding the effect of a pay rise on savings tax
- Planning savings for a retired person with a small pension
Sources
Last reviewed 18 October 2026.
Frequently asked questions
What is the Personal Savings Allowance?
It is the amount of savings interest you can earn without tax: £1,000 for basic rate taxpayers, £500 for higher rate taxpayers and £0 for additional rate taxpayers.
What is the starting rate for savings?
It lets you earn up to £5,000 of interest with no tax, but every £1 of other income above your personal allowance reduces it by £1.
Do I need to report interest to HMRC?
Banks report interest to HMRC. If you owe tax, HMRC usually adjusts your tax code, or you may need to complete a tax return if the amounts are large. Check the GOV.UK guidance.
Is interest in an ISA counted?
No. Interest and gains in an ISA are not taxed and do not count towards your allowances.
Does it cover Scotland?
The page uses the England, Wales and Northern Ireland bands. Scottish taxpayers have different bands for non-savings income.