Personal Savings Allowance calculator
Enter your other income and interest outside ISAs. The calculator applies your Personal Allowance, the starting rate for savings and your £1,000, £500 or £0 Personal Savings Allowance in the right order.
The headline is the extra Income Tax caused by the interest. It includes tax on interest and any extra tax on other income when interest reduces your Personal Allowance above £100,000.
How much interest can you earn tax free?
A basic-rate taxpayer can receive up to £1,000 of savings interest at 0%, a higher-rate taxpayer up to £500, and an additional-rate taxpayer gets no Personal Savings Allowance in 2026/27.
People with lower other income may also use the £5,000 starting rate for savings. That band falls by £1 for every £1 of taxable non-savings income and reaches zero once that income is £5,000. Any unused Personal Allowance can shelter interest before either savings allowance is needed.
| Your position | 0% savings amount | Rate after it |
|---|---|---|
| Starting rate, where available | Up to £5,000 | Depends on band |
| Basic-rate taxpayer | £1,000 | 20% |
| Higher-rate taxpayer | £500 | 40% |
| Additional-rate taxpayer | £0 | 45% |
The allowances and starting-rate calculation come from gov.uk guidance on tax-free savings interest. Income Tax bands and the £12,570 Personal Allowance come from gov.uk Income Tax rates.
Worked savings-tax examples
These examples use England, Wales or Northern Ireland rates, no dividends and no special reliefs. The interest is the amount paid or credited during the tax year, not the money held in the account.
| Other income | Interest | Starting rate used | PSA used | Tax caused |
|---|---|---|---|---|
| £0 | £20,000 | £5,000 | £1,000 | £286 |
| £15,000 | £5,000 | £2,570 | £1,000 | £286 |
| £40,000 | £5,000 | £0 | £1,000 | £800 |
| £50,270 | £2,000 | £0 | £500 | £600 |
Scotland and the Personal Allowance taper
Savings interest is taxed at the UK savings rates of 20%, 40% and 45%, including for Scottish taxpayers. A Scottish taxpayer's PSA tier uses the UK band that the same total income would occupy. Scottish rates still apply to wages, pensions, property profit and other non-savings income, so the calculator uses them to value any extra non-savings tax caused when interest reduces the Personal Allowance above £100,000.
Adjusted net income above £100,000 reduces the Personal Allowance by £1 for each complete £2 over the line. It is gone at £125,140. Interest counts towards that total, so it can create tax beyond the direct savings charge.
This focused estimate excludes dividends, Gift Aid, pension contributions, foreign savings, accrued income, trust income, jointly held account allocation and special allowances. Enter interest outside ISAs only. ISA interest remains tax free and does not belong in the input.
Common savings allowance questions
Does the Personal Savings Allowance reduce taxable income?
No. It is a 0% tax band. Interest covered by it still counts when deciding whether your income reaches a higher band and whether the Personal Allowance tapers.
Do I enter the savings balance or the interest?
Enter only interest paid or credited in the tax year. A £20,000 account paying 5% for a full year produces roughly £1,000 of interest, so the input is £1,000.
Does ISA interest use the allowance?
No. Interest inside an ISA is tax free and does not use the Personal Savings Allowance. Leave it out.