Savings Interest Tax Calculator
Estimate how much tax you will pay on your UK savings interest, factoring in the Personal Savings Allowance (PSA) and the starting rate for savings.
Calculate Your Savings Tax
Enter your estimated annual savings interest and your other gross income to instantly see your tax-free allowances, taxable interest, and estimated tax due.
Savings Tax Estimator
Get a clear breakdown of your tax-free allowances and liabilities.
How it Works
Understanding your savings tax
Personal Allowance Check
We first apply your £12,570 Personal Allowance to your other income. Any unused portion is applied to your savings interest tax-free.
Starting Rate for Savings
If your other taxable income is low, you may qualify for the 0% starting rate for savings, which provides up to £5,000 of tax-free interest.
Personal Savings Allowance
Based on your income tax band, we apply the PSA: £1,000 for basic rate, £500 for higher rate, and £0 for additional rate taxpayers.
Tax Calculation
Any interest remaining after all allowances are exhausted is taxed at your marginal income tax rate (20%, 40%, or 45%).
Savings Tax Allowances
A general overview of the tax-free allowances available for savings interest in the 2024/2025 tax year.
| Income Tax Band | Taxable Income Range | Personal Savings Allowance | Savings Tax Rate |
|---|---|---|---|
| Basic Rate | £12,571 – £50,270 | £1,000 | 20% |
| Higher Rate | £50,271 – £125,140 | £500 | 40% |
| Additional Rate | Over £125,140 | £0 | 45% |
| Starting Rate* | Non-savings income < £17,570 | Up to £5,000 | 0% |
*The £5,000 starting rate for savings is reduced by £1 for every £1 of non-savings income above the Personal Allowance (£12,570). It cannot be combined with the Personal Savings Allowance if your non-savings income pushes you into the basic rate band or higher.
Savings Tax FAQ
Answers to the most frequently asked questions about UK savings interest, tax allowances, and HMRC rules.
You may have to pay tax on your savings interest if it exceeds your tax-free allowances. Most people benefit from the Personal Savings Allowance (PSA), which lets basic rate taxpayers earn up to £1,000 in interest tax-free, and higher rate taxpayers earn up to £500 tax-free. Additional rate taxpayers do not receive a PSA.
The Personal Savings Allowance is a tax-free amount of savings interest you can earn each year. It is £1,000 for basic rate taxpayers, £500 for higher rate taxpayers, and £0 for additional rate taxpayers. Your allowance is determined by your highest rate of Income Tax.
The starting rate for savings allows you to earn up to £5,000 in savings interest at a 0% tax rate, but only if your other taxable income (like salary or pension) is below the starting rate limit of £17,570. For every £1 of other income above the Personal Allowance (£12,570), the £5,000 starting rate decreases by £1.
No. Interest earned within a Cash ISA or Stocks and Shares ISA is completely tax-free and does not count towards your Personal Savings Allowance or your total taxable savings interest. This calculator is designed for interest earned in standard, non-ISA savings accounts.