£20,000.00 other income, £1,500.00 interest
£1,000.00 by the £1,000.00 Personal Savings Allowance (basic rate), leaving £500.00 taxed. Tax: £100.00 in 2026/27 and £110.00 from 6 April 2027 (£10.00 more).
Money · Tax on savings interest
Savings tax calculator: 2026/27 and from 6 April 2027
Tax on savings interest depends on your other income: basic-rate taxpayers get £1,000 of interest tax-free, higher-rate taxpayers £500 and additional-rate taxpayers nothing, and from 6 April 2027 the savings rates rise to 22%, 42% and 47% (GOV.UK).
22% / 42% / 47%Savings rates from 6 April 2027 (now 20% / 40% / 45%)
Tax on your savings interest, this year and next
Runs in your browser, with no run limit
Enter the interest you expect for the tax year from accounts outside ISAs, and your other taxable income before tax (wages, pensions, self-employed profit, rent). Leave out dividends. Joint account: HMRC splits the interest equally, so enter your half.
Result
Personal Savings Allowance: £1,000.00 (basic rate taxpayer). Tax on savings: £100.00 in 2026/27 and £110.00 in 2027/28.
| Step | 2026/27 | 2027/28 (from 6 April 2027) |
|---|---|---|
| Personal Allowance left for interest | £0.00 | £0.00 |
| Starting rate for savings used (0%) | £0.00 | £0.00 |
| Personal Savings Allowance used | £1,000.00 | £1,000.00 |
| Interest taxed at basic rate | £500.00 | £500.00 |
| Interest taxed at higher rate | £0.00 | £0.00 |
| Interest taxed at additional rate | £0.00 | £0.00 |
| Tax on savings interest | £100.00 | £110.00 |
| Change from 6 April 2027 | – | £10.00 |
Uses the UK rate bands on GOV.UK (savings rates are the same across the UK). 2027/28 uses the 2026/27 Personal Allowance and bands, which GOV.UK has not yet published for 2027/28. Rounded to the penny; HMRC’s own calculation is what you pay.
Worked answers
Three worked answers from this calculator
Each button loads the amounts into the calculator above.
£60,000.00 other income, £3,000.00 interest
£500.00 by the £500.00 Personal Savings Allowance (higher rate), leaving £2,500.00 taxed. Tax: £1,000.00 in 2026/27 and £1,050.00 from 6 April 2027 (£50.00 more).
£10,000.00 other income, £6,000.00 interest
£2,570.00 is covered by unused Personal Allowance, £3,430.00 by the starting rate for savings, so none is taxed. Tax: £0.00 in 2026/27 and £0.00 from 6 April 2027.
GOV.UK rules
How the allowances work, in order
- Personal Allowance (£12,570.00 in 2026/27): if your wages, pension or other income don’t use it all, HMRC applies the rest to your savings interest. It goes down by £1 for every £2 of income over £100,000, and is zero from £125,140.
- Starting rate for savings: if your other taxable income is less than £17,570, you can earn up to £5,000 of interest tax-free. Every £1 of other income above your Personal Allowance reduces it by £1.
- Personal Savings Allowance: £1,000 for basic rate taxpayers, £500 for higher rate and £0 for additional rate. To find your band, add all your interest to your other income.
- Interest above your allowances is taxed at the savings rate for your band.
| Band | Taxable income | Personal Savings Allowance |
|---|---|---|
| Personal Allowance | Up to £12,570 | – |
| Basic rate | £12,571 to £50,270 | £1,000 |
| Higher rate | £50,271 to £125,140 | £500 |
| Additional rate | Over £125,140 | £0 |
Interest in ISAs is not taxed and doesn’t use these allowances. HMRC adds up interest from all your accounts, and splits joint-account interest equally. GOV.UK: How much is tax free; GOV.UK: Income Tax rates.
Budget 2025 changes
What changes on 6 April 2027
HMRC: “The tax rates for savings income will increase from April 2027… These rates apply across the UK.” The starting rate for savings and the Personal Savings Allowance remain unchanged.
| Band | 2026/27 | 2027/28 |
|---|---|---|
| Savings basic rate | 20% | 22% |
| Savings higher rate | 40% | 42% |
| Savings additional rate | 45% | 47% |
| Starting rate for savings | 0% on up to £5,000 | Unchanged |
| Personal Savings Allowance | £1,000 / £500 / £0 | Unchanged |
- Cash ISA limit: from 6 April 2027 the annual cash ISA subscription limit is £12,000 for people aged under 65, within the overall £20,000 ISA limit. If you are 65 or over, the cash ISA limit stays at £20,000. HMRC: Cash ISA limit reduction.
- Order of allowances: from April 2027 the law applies reliefs and allowances to other income before savings, dividend and property income. For wages or pension plus interest, this calculator already works that way in both years.
- 2027/28 Personal Allowance and bands: not yet published by GOV.UK for 2027/28, so this page assumes the 2026/27 figures. It is an assumption, not a GOV.UK figure.
HMRC: Income Tax changes to tax rates for property, savings and dividend income; HMRC: Tax-free savings newsletter 19.
Before you rely on it
If the 28 October 2026 Budget changes this
The Budget is on 28 October 2026. If it changes the savings rates, the allowances, the 2027/28 bands or the cash ISA limit, this page is updated that day from GOV.UK’s Budget documents. Until then, the 2027/28 column uses the rules HMRC published after Budget 2025.
Related
Also new this week.
Winter Fuel Payment 2026/27 checker
Born on or before 27 June 1960? Check whether you get £100 to £300 this winter and whether HMRC takes it back above £35,000.
Helpful answers
Savings tax FAQs.
How much savings interest can I earn tax-free?
It depends on your other income. Basic rate taxpayers get a £1,000 Personal Savings Allowance, higher rate £500 and additional rate £0. If your other income is under £17,570 you may also get up to £5,000 at the 0% starting rate, plus any unused Personal Allowance.
What are the savings tax rates from April 2027?
From 6 April 2027 (the 2027/28 tax year) savings interest above your allowances is taxed at 22% (basic), 42% (higher) and 47% (additional), up from 20%, 40% and 45%. The rates apply across the UK.
Is the Personal Savings Allowance changing in 2027?
No. HMRC says the starting rate for savings and the Personal Savings Allowance remain unchanged from 6 April 2027.
What is the cash ISA limit from April 2027?
£12,000 a year for people under 65, within the overall £20,000 ISA limit. If you are 65 or over, you can still put up to £20,000 a year into a cash ISA.
How much tax on £1,500.00 interest with a £20,000.00 salary?
£100.00 in 2026/27 and £110.00 from 6 April 2027: the first £1,000.00 is covered by the Personal Savings Allowance and the rest is taxed at the basic savings rate.
Sources, opened 22 October 2026: GOV.UK, Income Tax rates and Personal Allowances; GOV.UK, Tax on savings interest: how much is tax free; HMRC, Income Tax: changes to tax rates for property, savings and dividend income; HMRC, Tax-free savings newsletter 19, November 2025; HMRC, Cash ISA limit reduction. Contains public sector information licensed under the Open Government Licence v3.0. An estimate, not tax advice.