Work out interest income tax instantly with clear inputs, formula shown and shareable results.
Deposit interest is fully taxable at your marginal rate, while savings account interest often enjoys a small exemption. For a top-rate taxpayer the after-tax return on deposits frequently sits below inflation.
Interest tax
Taxable = deposit interest + savings interest - savings exemption; tax at marginal rate
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Generally as it accrues or is credited, even in cumulative deposits where no cash is received.
No. It is usually 10% while your slab may be 30%, so a balance often remains.