Tax on savings interest

How much of your interest is tax-free, and the tax on the rest.

Your details

Your result

Tax on your savings interest£200
  • Tax-free90%£1,800
  • Tax10%£200
Personal Savings Allowance£1,000
Starting rate for savings available£0
Interest that’s taxed£1,000
Assumptions and limits

2026/27: £1,000 tax-free for basic-rate taxpayers, £500 for higher-rate, nothing for additional-rate. The £5,000 starting rate shrinks by £1 for every £1 of other income above £12,570. Interest in an ISA is always tax-free. Tax rates on savings are due to rise by 2 percentage points from April 2027.

Sources: Tax on savings interest · Income Tax ratesTax year 2026/27

Common questions

Do I need to tell HMRC about my interest?

Banks report interest to HMRC, which usually collects any tax through your tax code. If you file Self Assessment, include it on your return.

Does ISA interest count?

No. Interest in a cash ISA is tax-free and doesn’t use up your Personal Savings Allowance.

What’s changing in April 2027?

Tax rates on savings interest are due to rise by 2 percentage points, to 22%, 42% and 47%.

How we calculate

Every calculator uses the published 2026/27 rates from one shared set of rules, so when a rate changes, it changes everywhere.

Where rates come from

Tax, National Insurance, student loan, benefit and property tax rates come from GOV.UK. Each calculator links to its sources.

What we don’t cover

Scottish income tax bands, tax codes other than 1257L, benefits in kind and your personal circumstances. Results are estimates to help you plan, not a payslip or advice.