Personal Savings Allowance Calculator, 2026/27
Interest on savings is taxable, but most savers keep a slice of it tax-free through the personal savings allowance. This calculator shows how much of your interest for the year escapes tax based on your other income.
The personal savings allowance calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Personal savings allowance 2026/27: £1,000 for basic rate taxpayers, £500 for higher rate, none for additional rate. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under personal & self assessment tax. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
Regulated by
Regulated & AML supervisor
AAT fellow member
Xero Gold PartnerCertified advisor
QuickBooks PartnerCertified ProAdvisor100+ yearsCombined team experienceFully insuredUp to £2m indemnityPersonal Savings Allowance Calculator
Result, 2026/27
Interest covered by your PSA
Your personal savings allowance
Basic rate taxpayerInterest left taxable
Starting rate for savings
Extra 0% band, only if non-savings income is lowIllustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
The personal savings allowance lets basic rate taxpayers earn £1,000 of savings interest tax-free each year, and higher rate taxpayers £500. Additional rate taxpayers, with income above £125,140, get no allowance at all.
This calculator works out your tax band from your other taxable income, applies the matching allowance, and shows how much of your interest is covered versus how much is taxable at your marginal rate.
There is also a separate starting rate for savings of up to £5,000, available where your non-savings income is low enough to leave room in the basic rate band, but this mainly helps people with modest earnings and larger savings pots.
Interest that counts
Interest from bank and building society accounts, savings bonds, credit union accounts and most peer-to-peer lending counts towards the personal savings allowance. Interest earned inside an ISA does not, because ISA interest is already tax-free regardless of the allowance.
Banks and building societies now pay interest gross, without deducting tax, and report the annual total to HMRC directly, so any tax due on interest above the allowance is usually collected through a tax code adjustment or self-assessment.
Managing interest across tax bands
Savers who are close to the boundary between basic and higher rate, or higher and additional rate, can sometimes reduce their overall tax by using pension contributions or Gift Aid to bring taxable income down, which both frees up more of the higher personal savings allowance and reduces the rate charged on interest above it.
Married couples and civil partners can also consider moving savings into the name of whichever partner has the lower income or more unused allowance.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
How much is the personal savings allowance in 2026/27?
£1,000 for basic rate taxpayers and £500 for higher rate taxpayers. Additional rate taxpayers, with income over £125,140, receive no personal savings allowance.
Does ISA interest use up my personal savings allowance?
No. Interest earned within an ISA is already tax-free and does not count towards, or use up, your personal savings allowance.
Do I need to declare savings interest if it is under the allowance?
Usually not separately, but banks report interest totals to HMRC, and if you already complete a self-assessment return you should still include the gross interest figure on it.
What happens if interest pushes me into a higher tax band?
Your allowance reduces once you cross into the higher or additional rate band, so a large interest payment can both reduce your own allowance and increase the rate charged on the excess.
Keep going
Related calculators
Same rates, different question.
Savings Interest Tax Calculator
Calculate the actual income tax due on savings interest above your personal savings allowance for 2026/27 at your marginal rate.
CalculatorSecond Job Tax Calculator
See how much tax you will actually pay on a second job or side income once your personal allowance is already used by your main employment.
CalculatorStealth Tax Calculator
See how frozen tax thresholds quietly increase your tax bill through fiscal drag, and where the effective 60% marginal rate trap applies in 2026/27.
CalculatorTax Refund Calculator
Estimate a PAYE tax refund for 2026/27 caused by an emergency tax code, an incomplete year of employment, or unused personal allowance.