Do I pay tax on my savings interest?
Most people can earn some interest tax-free. Enter your income and savings to see how much tax you'll owe on the rest, and what you'll earn each month.
Updated for the 2026/27 tax year · rates checked 22 Sep 2026 against GOV.UK
Your income
Salary, pension and rent, before tax. Use your salary after any salary-sacrifice pension.
Your savings
These are example accounts. Replace them with your own. Nothing leaves your browser.
Your interest, month by month
Interest builds up daily and is paid monthly. Accounts that pay yearly show all their interest in March. Assumes you don't add or take out money.
Common questions
What is the Personal Savings Allowance?
It's the interest you can earn each year without paying tax: £1,000 if you're a basic-rate taxpayer, £500 if you're higher rate, and nothing if you're additional rate. Your band depends on your total income, including the interest. GOV.UK: tax on savings interest
What is the £5,000 starting rate for savings?
If your other income is under £17,570, you can earn up to £5,000 of extra interest tax-free on top of the Personal Savings Allowance. Every £1 of other income above £12,570 reduces it by £1. GOV.UK: tax on savings interest
Do I need to tell HMRC about my savings interest?
Usually not. Banks report your interest to HMRC, which collects any tax by changing your tax code or sending a Simple Assessment bill. If your interest is over £10,000, or you already file Self Assessment, put it on your tax return. GOV.UK: check if you need a tax return
Is Cash ISA interest taxed?
No. ISA interest is tax-free and doesn't use up your Personal Savings Allowance. You can put up to £20,000 a year into ISAs. From April 2027, if you're under 65, only £12,000 of that can go into a Cash ISA. GOV.UK: ISAs
What changes in April 2027?
From 6 April 2027, tax on savings interest goes up 2 percentage points, to 22% basic, 42% higher and 47% additional rate. The allowances stay the same. Switch the tax year above to 2027/28 to see how this affects you.