Will you pay tax on your savings interest?
See how unused Personal Allowance, the £5,000 starting rate and the £1,000 or £500 Personal Savings Allowance stack together before tax is charged.
Saved setupsNothing is saved automatically
£875 net from £1,125 gross interest, an effective tax rate of 22.2%.
| Gross interest | £1,125 |
|---|---|
| Personal Savings Allowance (higher rate) | −£500 |
| Taxable interest | £625 |
| Net interest | £875 |
At this income, rate and ownership share, tax starts at roughly £11,111 of total non-ISA savings. Your exact threshold can change as interest moves you between tax bands.
- £250 of the return is lost to taxA cash ISA shelters interest, but compare its rate with the after-tax rate on the best ordinary savings account.
- Interest can change your tax bandThe calculator adds savings interest to other income before choosing the £1,000, £500 or £0 Personal Savings Allowance.
An estimate for bank and building-society interest under 2026/27 rules. It excludes dividends, bond funds, offshore accounts and special circumstances. Not tax advice.
How this calculation works
Interest is added to other income to determine the personal allowance and tax band. Unused personal allowance applies first, followed by the starting rate for savings and Personal Savings Allowance. Any interest left is stacked above non-savings income and taxed through the UK savings bands. Scottish non-savings rates are used when choosing the Personal Savings Allowance.