Personal Savings Allowance and Starting Rate
How much interest on savings outside an ISA you can earn before paying tax, depending on your tax band and other income.
Personal Savings Allowance: basic rate taxpayers
£1,000
Interest up to this amount each tax year is tax-free.
GOV.UK — HMRC · checked 30 Sep 2026
Personal Savings Allowance: additional rate taxpayers
£0
Additional rate taxpayers pay tax on all savings interest outside tax-free accounts.
GOV.UK — HMRC · checked 30 Sep 2026
Starting rate for savings (maximum)
£5,000
Extra tax-free interest for people with low other income. Every £1 of other income above the Personal Allowance reduces it by £1.
GOV.UK — HMRC · checked 30 Sep 2026
Starting rate ends when other income reaches
£17,570
Other income means wages, pensions and similar, not the savings interest itself.
GOV.UK — HMRC · checked 30 Sep 2026
Standard Personal Allowance
£12,570
Savings interest is also covered by any unused Personal Allowance.
HMRC · checked 30 Sep 2026