UK Savings Interest Tax Calculator (2026)

Add up all your current accounts, easy-access savings, notice accounts, fixed bonds. Exclude ISAs.

If you're earning 4% on £10k and 5.5% on £20k, weight it: (10k × 4% + 20k × 5.5%) / 30k = 5%.

Not sure? If total income (salary + dividends + rental) is over £12,570, over £50,270 or over £125,140, you're in basic, higher or additional respectively.

Salary, rental income, pension income etc. — the amount that uses your Personal Allowance before savings interest is taxed.

Scottish residents pay Scottish income tax (different bands/rates) on savings interest. Everyone else uses UK bands.

See your gross interest, PSA used, starting rate used, taxable remainder, and estimated tax. If tax is owed, the tool shows ISA-migration savings.

The £5,000 starting-rate band sits above the Personal Allowance but ONLY for savings income. Non-savings income uses up the PA first, then eats into the starting rate band at £1 per £1. So someone earning £14,570 (PA + £2,000 salary) has £3,000 of starting rate left for savings. The PSA then sits on top: £1,000 more tax-free. Total: £4,000 of savings income tax-free. This sequencing is why the 2020–2024 era of low interest rates made PSA feel generous, while the 2023+ era of 5% rates has made the PSA feel tiny (£1,000 of 5% interest is only £20k of savings).

Scotland devolved income tax on salary/pension/trading income in 2017, but DID NOT devolve savings and dividend tax. So a Scottish higher-rate taxpayer pays 42% on salary but 40% on dividends. They pay 42% on savings interest above PSA though — matching the salary rate. This creates odd effects: a Scottish taxpayer might be in the 42% Scottish higher rate band based on salary, but still gets £500 PSA (set by UK band-for-savings definition), not £0. Scottish Advanced Rate (£75k+) pays 45% on savings — 5pp more than UK higher rate taxpayers.

A "flexible ISA" lets you withdraw AND redeposit within the same tax year without affecting your annual allowance. Example: contribute £20k in April (uses full allowance), withdraw £5k in September for a car, redeposit £5k in March — this £5k doesn't re-use the allowance. Not all ISAs are flexible (check terms). Useful for: emergency fund parked in ISA, pre-property-purchase cash, irregular self-employed cashflow. Non-flexible ISA withdrawal is permanent against that tax year's allowance.

If you don't file self-assessment, HMRC collects savings tax via PAYE code adjustment in the following tax year OR via a Simple Assessment letter. First-time savers who breach PSA often get a surprise adjustment letter in August/September after the tax year ends. Self-assessment filers declare interest on form SA101. Always cross-check HMRC's figures against your own — bank reports to HMRC are occasionally wrong, particularly on joint accounts where both holders are reported the full amount.