Savings interest tax calculator
Calculate how much tax is due on bank and savings interest outside of an ISA after your available allowances.
Other settings
Results
| Tax computation | Interest | Rate | Tax |
|---|---|---|---|
| TotalsTotal | £0 | 0% | £0 |
Savings allowances and rates
| Tax year | Starting rate | Basic PSA | Higher PSA | Additional PSA | Savings rates |
|---|---|---|---|---|---|
| 2024/25 | £5,000 | £1,000 | £500 | £0 | 20%, 40%, 45% |
| 2025/26 | £5,000 | £1,000 | £500 | £0 | 20%, 40%, 45% |
| 2026/27 | £5,000 | £1,000 | £500 | £0 | 20%, 40%, 45% |
How to use the UK savings interest tax calculator
Enter the savings interest you expect for the tax year, then add your other income such as employment or self employment income, add your dividend income then review the results.
Steps
- Enter savings interest and choose whether the amount is per year or per month.
- Alternatively enter your bank balance and interest rate to calculate the annual interest.
- Add other income such as employment, self-employment, pension, or rental income.
- Add dividend income if you receive taxable dividends outside an ISA.
- Review the estimated tax on interest, available allowances, and annual breakdown table.
Input notes
- Savings interest
- Use taxable savings interest from bank accounts, building societies, bonds, peer-to-peer lending, or similar savings products. Leave out ISA interest.
- Other income
- Use taxable non-savings income before tax, such as employment income, self-employment profit, pension income, or rental profit. Do not include dividends here.
- Dividend income
- Use taxable dividends outside ISAs. Dividend income can affect adjusted net income and the personal allowance taper.
- Tax year
- The calculator uses the personal allowance, savings allowances, and savings rates for the selected tax year.
What the results mean
- Tax on interest is the estimated income tax due on the savings interest entered.
- Personal Savings Allowance available shows the 0% savings band available based on your tax band.
- Starting rate allowance available shows the remaining starting rate for savings band based on your other income.
- The annual breakdown table shows the interest covered by each allowance and the interest taxed at each of the basic, higher, or additional tax rates.
Common questions
Do I include ISA interest?
No. Interest from Individual Savings Accounts is already tax-free, so it should not be included in the savings interest input.
How much savings interest can I earn tax-free?
It depends on your other income. Savings interest can be covered by any unused personal allowance, the starting rate for savings, and your Personal Savings Allowance. Someone with low other income may be able to earn more tax-free interest than someone whose wages or pension already use up their allowances.
What is the Personal Savings Allowance?
The Personal Savings Allowance is an amount of savings interest you can receive tax-free each tax year. Basic rate taxpayers usually get £1,000, higher rate taxpayers usually get £500, and additional rate taxpayers get £0.
What is the starting rate for savings?
The starting rate for savings is a 0% tax band for savings interest. It can cover up to £5,000 of interest, but it is mainly for people with low income from wages, pensions or other non-savings income.
Why does other income reduce the starting rate for savings?
The starting rate for savings can be up to £5,000, but it is reduced by other income above the personal allowance. Once other income reaches £17,570 with the standard personal allowance, the starting rate is no longer available.
Does dividend income change the savings tax calculation?
Dividend income is included in adjusted net income, so it can reduce the personal allowance for people over the taper threshold. It can also reduce the personal savings allowance if it pushes total income into a higher tax bracket however interest income is taxed before dividend income in the calculation.
Do I need to report savings interest on a Self Assessment tax return?
If you already complete a Self Assessment tax return, include your savings interest on it. You may need to register for Self Assessment if your income from savings and investments is over £10,000, or if HMRC tells you to send a return.
Is interest from a joint account split between both people?
Usually, yes. Interest from a joint account is normally split equally between the account holders for tax. If that does not reflect the real ownership of the money, you may need to contact HMRC.
Does the calculator include tax on my other income?
No. Other income and dividend income are used to work out your savings allowances and tax band, but this calculator does not calculate the tax due on those other types of income. Use the Self Assessment tax calculator if you want a full tax calculation.
What interest rate should I use for the balance calculation?
Use the annual interest rate for the account. The balance and rate boxes use a simple estimate and do not compound interest, so if your bank gives you an exact annual interest figure you can enter that directly in the savings interest box instead.
Assumptions
- Annual other income is treated as non-savings, non-dividend income that uses the personal allowance and income tax bands before savings interest.
- Dividend income is included for adjusted net income and personal allowance tapering, but savings interest is taxed before dividends in the tax calculation order.
- The starting rate for savings is reduced by annual other income above the standard personal allowance, not by savings interest or dividend income.
- The Personal Savings Allowance is based on the income tax band reached by total income, including dividend income.
- Interest from ISAs and other tax-free savings accounts should be excluded.
Source notes
- GOV.UK Tax on savings interestPersonal allowance, starting rate for savings, Personal Savings Allowance, and interest reporting guidance.
- GOV.UK Income Tax rates and Personal AllowancesCurrent personal allowance, income tax bands, and personal allowance taper rules.
- GOV.UK Income Tax rates and allowances for current and previous tax yearsPublished tables for current and previous tax year savings rates and allowances.