Savings Tax Calculator UK 2026/27 — HMRC Tax on Interest

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Pennywise Finance Editorial

Uses 2026/27 UK PSA bands (£1,000 / £500 / £0) and marginal income tax rates. Verified against gov.uk guidance.

Fact-checked
Reviewed September 2026
About our calculators

Runs entirely in your browser — your numbers are never sent to a server.

Your numbers

Taxable savings balance (non-ISA)£

Average interest rate%

Your income tax band

Non-savings income (for starting-rate check)£

Only affects result if under £17,570.

Result

Gross interest—

Allowance available—

Taxable interest—

Tax owed—

Net interest—

How UK savings tax works 2026/27

Three allowances stack:

Personal allowance (£12,570). If total income is under this, no tax at all.
Starting rate for savings (up to £5,000 at 0%). Available if non-savings income is below £17,570.
Personal Savings Allowance. £1,000 basic, £500 higher, £0 additional.

Interest above all three is taxed at your marginal rate.

How HMRC collects the tax

Banks report interest to HMRC after each tax year ends. HMRC adjusts your PAYE tax code the following year, or asks you to self-assess if untaxed interest exceeds £10,000.

How to pay less

Use your £20,000 Cash ISA allowance first
Hold savings in the name of the lower-rate spouse
Premium Bonds for amounts above ISA + PSA (prizes are tax-free)

Frequently asked questions

Does Cash ISA interest count?

No. ISA interest is tax-free by a separate mechanism and never uses your PSA.

Do Premium Bond prizes count?

No. Prizes are tax-free and do not count towards your PSA.

What about joint accounts?

Interest is split 50/50 for tax by default. Each holder uses their own PSA.

Related calculators

Illustrative calculation. Not personalised financial advice. Rates, bands and allowances for the 2026/27 UK tax year, verified against gov.uk at time of review. For regulated advice consult an FCA-authorised adviser.

UK Savings Tax Calculator 2026/27