Changing interest rates can mean you go over your Personal Savings Allowance (PSA) quicker, so it’s always a good idea to understand if you might need to pay tax on any savings interest you earn. Understanding your PSA could help you manage your money differently and help you make more of your tax efficient options, like an ISA.
How do I work out if I need to pay tax on my savings?
Our calculator will help give an idea of whether you will be over your PSA, based on your current income and money held in your UK savings accounts. Any other form of interest you may have earned under your PSA will be excluded, and you will need to account for it separately. If you want to know more about how PSA works before using the calculator, you can visit our Personal Savings Allowance page.
And remember, everyone’s saving situation is different and tax rules may be subject to change in the future. It’s your responsibility to pay any tax due.
To provide your result, we will assume
- The interest rate and balance for each of your accounts will stay the same for 12 months
- you're the sole account holder
- you'll have access to the interest within the same tax year
- your non-savings income is over £17,570 a year.
Our 2-step calculator will help you understand if you may have to pay tax on any savings interest you earn.
All you need are the details for your savings accounts (including interest rate and balance) and your total annual non savings taxable income, e.g. salary, bonus payments, pensions.
If you have any form of ISA, you don’t need to enter this into the calculator as any interest earned on these accounts is always free from income tax.