Your savings and income
See whether you pay tax on your savings interest, how much, and what the rise in April 2027 means for you.
Income Tax and savings figures current for 2026/27, last checked against GOV.UK.
Results update as you type
Your results
HMRC usually collects this through your tax code, using what your bank reports, or sends you a bill. You don’t need to do anything unless you’re asked, or you already fill in a Self Assessment return.
How the tax is worked out
Your other income of £60,000 uses up the bands first, then your interest is added on top.
| Part of your interest | Amount | Rate | Tax | From April 2027 |
|---|---|---|---|---|
| Personal Savings Allowance | £500 | 0% | £0.00 | £0.00 |
| In the higher rate band | £1,300 | 40% | £520.00 | £572.00 (44%) |
| Tax on your interest | £1,800 | £520.00 | £572.00 |
The April 2027 rates (24%, 44% and 49%) are announced, not yet law. The allowances stay the same.
How much you can save before paying tax
At your income, £500 of interest a year is tax-free. At 4.5%, that’s about £11,100 of savings outside an ISA.
| Interest rate | Savings before you pay tax | Tax on yours, a year |
|---|---|---|
| 3% | £16,700 | — |
| 4% | £12,500 | — |
| 4.5% (yours) | £11,100 | £520 |
| 5% | £10,000 | — |
Savings in an ISA don’t count, and you can put up to £20,000 a year into ISAs, all of it in cash if you like.
Using this calculator
Choose where you live, enter your other income for the year, then either what you have saved and its rate, or the interest itself. The results show the tax on your interest now and from April 2027, what’s tax-free, and how much you could save before paying tax.
- Other income means everything taxed before your interest: salary, pension, and self-employed or rental profit, before tax.
- Interest is taxed in the year it’s paid to you. A fixed-rate bond that pays everything at the end counts in the year it matures; one that pays yearly counts each year.
- Leave out ISAs, and Premium Bond prizes, which are tax-free.
- Interest from a joint account is split between you, usually half each: enter your half.
For the allowances, the April 2027 rise and how the tax is collected, read how savings interest is taxed.
How the figures are worked out
The tax is the same sum the Income Tax calculators on this site use. Your other income is taxed first, using the Personal Allowance, then your interest sits on top. Whatever is left of your Personal Allowance covers interest first. Then comes the starting rate for savings: up to £5,000 of interest at 0%, less £1 for every £1 of other income above the Personal Allowance. Then the Personal Savings Allowance at 0%: £1,000 for a basic rate taxpayer, £500 for a higher rate taxpayer and nothing for an additional rate taxpayer, decided by your income including the interest. The rest is taxed at 20%, 40% or 45%, by the band it falls in. The tax shown is the Income Tax with your interest, less the Income Tax without it, so it includes any Personal Allowance your interest costs you above £100,000. From April 2027 the same sum is used at 24%, 44% and 49%. In Scotland, the Scottish rates apply to your other income only.
Where the figures come from
Every rate and allowance checked against GOV.UK in October 2026.
- GOV.UK: Tax on savings interest: the Personal Allowance, the starting rate for savings, and the Personal Savings Allowance.
- GOV.UK: Income Tax rates and allowances, current and past: the bands and the £100,000 taper.
- GOV.UK: How you pay tax on savings interest: your tax code, a Simple Assessment, or Self Assessment over £10,000.
- GOV.UK: Individual Savings Accounts: the £20,000 yearly limit.
- GOV.UK: Budget 2026: the savings rates from 6 April 2027, and the cash ISA limit kept at £20,000.
Announced but not yet in force: from 6 April 2027 savings interest is due to be taxed at 24%, 44% and 49% across the UK (2 points announced at the 2025 Budget and 2 more at the 28 October 2026 Budget). They are used only in the “From April 2027” estimate, never in the 2026/27 figures.