Savings Interest Tax Calculator (2025/26)
Estimate how much tax you’ll pay on your savings interest this tax year.
Estimates only — based on 2025/26 HMRC savings tax rules.
Ready
| Description | Amount (£) |
|---|---|
| Tax-Free Allowance (PSA) | £0.00 |
| Taxable Interest | £0.00 |
| Tax Due on Interest | £0.00 |
| Interest After Tax | £0.00 |
Savings Tax Rates & Allowances 2025/26
Personal Savings Allowance (PSA)
| Basic rate taxpayer | £1,000 interest tax-free |
|---|---|
| Higher rate taxpayer | £500 interest tax-free |
| Additional rate taxpayer | No allowance |
Tax Rates on Savings Interest
| Tax Band | Interest Tax Rate |
|---|---|
| Basic Rate | 20% |
| Higher Rate | 40% |
| Additional Rate | 45% |
Starting Rate for Savings
| Up to £5,000 | 0% tax if your non-savings income is below £17,570 |
|---|
ISA interest is always tax-free and does not affect your allowances.
How Savings Interest Tax Works
All interest from banks, savings accounts, fixed bonds, credit unions and PayPal balances counts as taxable income unless held inside an ISA.
- You receive a Personal Savings Allowance based on your tax band.
- You may also benefit from the £5,000 starting rate for savings.
- Interest is added to your total income to determine your tax band.
- Banks report your interest to HMRC automatically.
- Tax is usually collected via your tax code or Self Assessment.
This calculator applies all HMRC savings tax rules for the 2025/26 tax year.
Savings Interest Tax Examples (2025/26)
Interest: £800
- Basic taxpayer PSA: £1,000
- No tax due
- Net: £800
Interest: £2,000
- Basic taxpayer: £1,000 PSA + 20% on £1,000
- Tax: £200
- Net: £1,800
Higher rate taxpayer
- PSA: £500
- Interest: £3,000
- Taxable: £2,500 @ 40%
- Tax: £1,000
- Net: £2,000
Frequently Asked Questions
Yes — bank interest is taxable unless it is earned inside a Cash or Stocks & Shares ISA.
HMRC adjusts your tax code or asks you to pay the tax through Self Assessment
if your interest is above your allowances.
This Savings Interest Tax Calculator applies HMRC 2025/26 Personal Savings Allowances, savings tax rules, and starting rate for savings thresholds.