£30,000 Savings Interest Tax 2025-26
Personal Savings Allowance · Tax owed · Net interest after tax
£30,000 savings interest — full breakdown 2025-26
| Item | Basic Rate | Higher Rate | Additional Rate |
|---|---|---|---|
| Gross interest | £30,000 | £30,000 | £30,000 |
| Personal Savings Allowance | \u00a31,000 | \u00a3500 | \u00a30 |
| Taxable interest | £29,000 | £29,500 | £30,000 |
| Tax rate | 20% | 40% | 45% |
| Tax owed | -£5,800 | -£11,800 | -£13,500 |
| Effective rate on interest | 19.3% | 39.3% | 45.0% |
| Net interest after tax | £24,200 | £18,200 | £16,500 |
How is tax calculated on £30,000 savings interest?
Your savings interest is taxed based on your income tax band. HMRC first applies your Personal Savings Allowance (PSA) — the portion of interest that is completely tax-free. Only the interest above your PSA is added to your taxable income.
On £30,000 of savings interest, a basic rate taxpayer (income £12,570–£50,270) has £1,000 covered by the PSA, leaving £29,000 taxable at 20% — a tax bill of £5,800 and net interest of £24,200. A higher rate taxpayer (income £50,271–£125,140) has only £500 covered, leaving £29,500 taxable at 40% — tax of £11,800 and net interest of £18,200. An additional rate taxpayer (income above £125,140) has no PSA, so all £30,000 is taxed at 45% — tax of £13,500 and net interest of £16,500.
Starting Rate for Savings
If your non-savings income is below £17,570 in 2025-26, you may qualify for an additional Starting Rate for Savings band of up to £5,000 at 0%. This band is reduced by £1 for every £1 of non-savings income above £12,570. If you are on a low income with significant savings interest, this can substantially reduce or eliminate your tax bill above the PSA.
Frequently asked questions
How much tax do I pay on £30,000 savings interest?
It depends on your income tax band. As a basic rate taxpayer you pay £5,800 (20% on £29,000 above the £1,000 PSA), keeping £24,200. As a higher rate taxpayer you pay £11,800 (40% on £29,500 above the £500 PSA), keeping £18,200. As an additional rate taxpayer you pay £13,500 (45% on all £30,000 with no PSA), keeping £16,500.
How much savings interest is tax-free in 2025-26?
In 2025-26 the Personal Savings Allowance gives basic rate taxpayers £1,000 of tax-free savings interest, higher rate taxpayers £500, and additional rate taxpayers £0. On top of this, if your non-savings income is below £17,570, the Starting Rate for Savings can add up to £5,000 of interest taxed at 0%.
Do I need to declare £30,000 savings interest to HMRC?
If your total savings interest exceeds your Personal Savings Allowance, you will need to tell HMRC. If you are registered for Self Assessment, declare it on your tax return. If not, HMRC may adjust your PAYE tax code automatically once your bank reports the interest, or you can report it via your Personal Tax Account at gov.uk. For interest of £30,000, higher and additional rate taxpayers will have a tax liability to report.
Does savings interest affect my tax band?
Yes. Savings interest counts as income and is added to your other income when working out your tax band. If your salary plus savings interest exceeds £50,270, you move into the higher rate band and your PSA drops from £1,000 to £500. HMRC adds the interest to your total income figure when calculating your annual tax liability.