UK Savings Interest Tax Calculator

Calculate how much tax you owe on savings interest. Uses the Starting Rate for Savings (0% on up to £5,000) and Personal Savings Allowance (£1,000 basic rate / £500 higher rate). Enter your employment income and savings interest to see your tax position.

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UK Savings Interest Calculator — Personal Savings Allowance & Starting Rate

Free UK savings interest tax calculator. Estimate tax on savings using the Personal Savings Allowance (PSA) and Starting Rate for Savings. See how much interest is tax-free.

Personal Savings Allowance£500Higher rate taxpayer
Starting Rate for Savings Used£00% rate on up to £5,000 of savings
PSA Used (tax-free)£500Savings covered by allowance
Taxable Interest£1,500Taxed at marginal rate
Tax on Interest£546
Net Interest Received£1,454

The Personal Savings Allowance (PSA) lets basic rate taxpayers earn £1,000 of savings interest tax-free, higher rate taxpayers £500, and additional rate taxpayers £0. The Starting Rate for Savings provides a 0% tax rate on up to £5,000 of savings income, reduced by £1 for every £1 of non-savings income above the Personal Allowance. Most banks deduct 20% tax from interest automatically, so basic rate taxpayers don't need to do anything extra.

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