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Interest Income Tax Calculator

Work out interest income tax instantly with clear inputs, formula shown and shareable results.

About Interest Income Tax Calculator

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.

Formula

Interest tax

Taxable = deposit interest + savings interest - savings exemption; tax at marginal rate

Worked example

With the default values below, Interest Income Tax Calculator returns Tax On Interest Income of $38,400.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Interest On Depositsminimum 0
120,000
Savings Account Interestminimum 0
18,000
Savings Interest Exemptionminimum 0
10,000
Marginal Tax Rateaccepts 0–60 %
30 %

Results

Tax On Interest Income
$38,400.00
Taxable Interest
$128,000.00
Exempt Savings Interest
$10,000.00
Interest Retained After Tax
$99,600.00

Step by step

  1. 1Values used
  2. 2Interest tax
  3. 3Tax On Interest Income= 38,400.00
  4. 4Taxable Interest= 128,000.00
  5. 5Exempt Savings Interest= 10,000.00
  6. 6Interest Retained After Tax= 99,600.00

Assumptions and limits

  • The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • 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.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

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.

Frequently Asked Questions

Is interest taxed when credited or when withdrawn?

Generally as it accrues or is credited, even in cumulative deposits where no cash is received.

Does the deduction at source settle the liability?

No. It is usually 10% while your slab may be 30%, so a balance often remains.

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