What could higher tax on savings cost you from April 2027?
The Budget raises the tax rates on savings interest to 24%, 44% and 49% from 6 April 2027 (now 20%, 40% and 45%). Your allowances stay the same. See what it could mean for you.
Use the figure before tax, not your take-home pay. It decides which tax band your savings interest falls into.
Only count savings that are not in an ISA, because ISA interest is tax-free. Add up all your accounts, including joint ones, as your share.
Fill in your income and savings above and your estimate appears here.
Where should your money go?
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What this estimate assumes
- It uses the income tax bands for England, Wales and Northern Ireland: personal allowance £12,570, basic rate band £37,700, additional rate above £125,140 of taxable income. The savings rates are the same across the UK, but if you pay Scottish income tax your bands differ, so your result could be slightly different.
- It applies the Personal Savings Allowance (£1,000 basic rate, £500 higher rate, none for additional rate), the 0% starting rate for savings (up to £5,000, reduced by your other taxable income) and any unused personal allowance, including the reduction in personal allowance above £100,000.
- It assumes thresholds and allowances stay as they are. It does not include dividends, rental income, pension contributions, Gift Aid, marriage allowance or other reliefs, which can change your result.
- Interest is counted in the year it is paid or credited, before tax, and only savings outside ISAs.
- The new rates were announced in the 28 October 2026 Budget and are due to be legislated in the Finance Bill 2026-27. They are not law yet, so details could still change.
Estimates only, not tax or financial advice. Figures are as of 4 November 2026, based on the Budget 2026 rates; see the Budget 2026 rates and allowances table and how much savings interest is tax-free on GOV.UK for the official position. For advice on your own situation, speak to a regulated adviser or HMRC.