UK Savings Interest Tax Calculator
Estimate the tax due on your UK savings interest for 2026/27, 2025/26 or 2024/25. Tax on savings interest depends on your other income, your Personal Allowance, the Starting Rate for Savings and your Personal Savings Allowance, not a flat percentage of your interest.
This calculator estimates tax on taxable savings interest only. It does not calculate Income Tax on your other income or Dividend Tax on dividend income; use the Income Tax Calculator or Dividend Tax Calculator for those. Savings interest is taxed using UK-wide rates and bands for everyone, including Scottish taxpayers.
Your savings tax bands
Savings interest is stacked on top of your other taxable income to work out which allowances and tax bands it falls into. The Starting Rate for Savings and the Personal Savings Allowance are both 0% tax rates, not amounts ignored when working out your bands: they still use up space in whichever band they fall into.
| Band | Rate | Interest | Tax charged |
|---|---|---|---|
| Personal Savings Allowance | 0% | £1,000.00 | £0.00 |
| Basic savings rate | 20% | £1,000.00 | £200.00 |
The Starting Rate for Savings
The Starting Rate for Savings is a 0% tax band of up to £5,000.00 for 2026/27. It is not a flat allowance: it shrinks by £1 for every £1 your other (non-savings) income is above your Personal Allowance, and disappears completely once your other income reaches your Personal Allowance plus £5,000.00.
Your Personal Savings Allowance
Based on this calculation you have Basic rate status, giving a Personal Savings Allowance of £1,000.00. Your Personal Savings Allowance depends on which tax band your total income falls into, including any dividend income entered above, even though dividends are taxed separately.
Unused Personal Allowance
Your Personal Allowance is used against your other taxable non-savings income first. Any Personal Allowance left over then covers your savings interest before the Starting Rate for Savings or Personal Savings Allowance are even considered.
ISA interest and Premium Bonds
Interest earned inside an ISA is always tax-free and should not be entered into this calculator. Premium Bond prizes are also never taxable and are not interest at all.
Why dividend income can matter
This calculator does not calculate Dividend Tax. Dividend income is only used, if you enter it, to work out your Personal Savings Allowance correctly: your allowance depends on which tax band your total income falls into, and dividend income counts towards that total even though it is taxed after savings income under separate Dividend Tax rules. If you have dividend income as well as savings interest, use the Dividend Tax Calculator to estimate the tax on your dividends.
Scottish taxpayers
Savings interest is taxed using UK-wide rates and bands for everyone, wherever you live in the UK. Scottish taxpayers use Scottish Income Tax bands for their other non-savings income, but this does not change how their savings interest is taxed: the Starting Rate for Savings, Personal Savings Allowance and savings tax bands are always the UK-wide figures.
Personal Allowance and the £100,000 threshold
Savings interest counts towards your total income when working out your Personal Allowance, including the taper that reduces your Personal Allowance by £1 for every £2 of income above £100,000, reaching zero at £125,140. If your savings interest is what pushes your income past £100,000, this can increase the tax due on your other income as well as on your interest, shown separately above where it applies.
How tax on savings interest is collected
Banks and building societies pay interest without deducting tax. HMRC usually collects any tax owed by adjusting your PAYE tax code, based on interest reported by your bank or building society, or through Self Assessment if your savings and investment income is high or you already file a return. This calculator estimates your liability; it does not mean a bank will deduct this amount directly.
Worked examples
Figures below are for 2026/27, generated by this calculator's own engine.
| Scenario | Other income + interest | Estimated tax on savings | Effective rate |
|---|---|---|---|
| Unused Personal Allowance covers interest | £0 + £10,000 | £0.00 | 0.0% |
| Basic-rate Personal Savings Allowance | £30,000 + £2,000 | £200.00 | 10.0% |
| Higher-rate Personal Savings Allowance | £60,000 + £2,000 | £600.00 | 30.0% |
| Additional-rate, no Personal Savings Allowance | £150,000 + £5,000 | £2,250.00 | 45.0% |
Frequently asked questions
How much savings interest can I earn tax free?
What is the Personal Savings Allowance?
What is the Starting Rate for Savings?
Do additional-rate taxpayers get a Personal Savings Allowance?
Is ISA interest taxable?
Do Scottish taxpayers pay different tax on savings interest?
Does savings interest affect my Personal Allowance?
How does HMRC collect tax on savings interest?
Official sources
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Version 1.0.0
This calculator provides estimates of UK tax on savings interest for general information only and is not financial or tax advice. It does not calculate Income Tax on other income or Dividend Tax on dividend income, and it does not reproduce your exact tax code or Self Assessment position. Individual circumstances can differ; check GOV.UK guidance or seek professional advice if you are unsure.