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 |
The Personal Savings Allowance is set by HMRC. Full details are available on GOV.UK – Tax on savings interest. Your allowance depends on your income tax band — use our Income Tax Calculator to check which band you fall into.
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 |
|---|
The starting rate for savings is a 0% band of up to £5,000 available to lower earners before their Personal Savings Allowance is applied.
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. See GOV.UK – Tax-free savings allowances for the full rules.
- You may also benefit from the £5,000 starting rate for savings.
- Interest is added to your total income to determine your tax band. Use our Income Tax Calculator to model the combined effect.
- Banks report your interest to HMRC automatically under Common Reporting Standard rules.
- Tax is usually collected via your tax code or Self Assessment. Use our PAYE Tax Calculator to check your tax code position.
This calculator applies all HMRC savings tax rules for the 2025/26 tax year.
Savings Interest Tax Examples (2025/26)
- Basic taxpayer PSA: £1,000
- No tax due
- Net: £800
- Basic taxpayer: £1,000 PSA + 20% on £1,000
- Tax: £200
- Net: £1,800
- PSA: £500
- Interest: £3,000
- Taxable: £2,500 @ 40%
- Tax: £1,000
- Net: £2,000
If you also have dividend or investment income, see our Investment Income Tax Calculator and Dividend Tax Calculator.
Frequently Asked Questions
This Savings Interest Tax Calculator applies HMRC 2025/26 Personal Savings Allowances, savings tax rules, and starting rate for savings thresholds. You may also find our National Insurance Calculator and Capital Gains Tax Calculator useful.