Check How Much Tax You’ll Pay on Interest

Use our free calculator to see how much tax you would pay on your savings.
If your income is near the boundaries, check HMRC for your exact rate.

How to use the calculator

1. Enter the total amount you have in savings.
2. Enter the interest rate (APR) you receive.
3. The calculator will show your estimated interest earned over one year and the tax due for:
Basic rate taxpayers
Higher rate taxpayers
Additional rate taxpayers

how the calculations are made

Basic Rate Taxpayer (20%)
A basic rate taxpayer is someone whose total income before tax is between £12,571 and £50,270 per year.
Their Personal Savings Allowance for interest on savings is £1,000 per year.
They pay 20% income tax on earnings above the personal allowance.

Higher Rate Taxpayer (40%)
A higher rate taxpayer is someone whose total income before tax is between £50,271 and £125,140 per year.
Their Personal Savings Allowance for interest on savings is £500 per year.
They pay 40% income tax on earnings above the personal allowance.

Additional Rate Taxpayer (45%)
An additional rate taxpayer is someone whose total income before tax is over £125,140 per year.
Their Personal Savings Allowance for interest on savings is £0.
They pay 45% income tax on earnings above the personal allowance.

Always check the latest regulations here https://www.gov.uk/apply-tax-free-interest-on-savings

disclaimer

This calculator is provided for general information only and should not be taken as financial advice, tax advice, or a personal recommendation.
Tax rules, thresholds and allowances can change at any time, and their impact depends on your individual circumstances.
While every effort has been made to ensure the calculations are accurate at the time of publishing, the results shown are estimates only.

This calculator assumes that the savings shown are held outside of tax-efficient accounts, such as ISAs, where interest is normally tax-free.
It also assumes simple interest over one year and does not take into account changes in interest rates, compounding, additional charges, or any other products or accounts you may hold.

Please use this tool as a rough guide to help you understand how tax on savings interest might work.
You should not rely on it to make financial decisions.
If you need support with your personal tax situation or financial planning, consider speaking to a qualified financial adviser or contacting HMRC directly.