Budget 2026 • Free calculator • Nothing stored

Savings and rental income tax: 2026/27 against 2027/28

The Budget on 28 October 2026 announced that savings and property income will be taxed at 24%, 44% and 49% from 6 April 2027, up from 20%, 40% and 45%. Enter your income and see what it adds, with your allowances taken off first.

Allowances includedPersonal Allowance, starting rate for savings, Personal Savings Allowance and the £1,000 property allowance.
Both years, same figuresSee the extra tax from rental profit and from savings separately.
Honest limitsNo dividends, no Scotland and no mortgage interest relief, and we say so.
Example figures — replace with your own. Example figures are filled in so you can see how it works — replace them with your own before relying on the result shown.

1. Where you’re taxed

Savings rates are the same across the UK. Property rates are announced for England, Wales and Northern Ireland.

2. Your income for the year

Use a typical full year. Leave out dividends: this calculator doesn’t cover them.

Wages, pension or self-employed profit, before tax. Use 0 if there’s none.
Enter 0 or more.
Before any costs. Use 0 if you have no rental income.
Enter 0 or more.
Repairs, agent fees, insurance and so on. The £1,000 property allowance is used instead if it’s better.
Enter 0 or more.
Interest from banks, building societies and bonds, before tax.
Enter 0 or more.

Show the maths

How we got your figure

We tax your income in the order HMRC does: other income first, then rental profit, then savings interest.

The step-by-step working will appear here.

Guide

What changes for savings and rental income

From 6 April 2027 the Budget announced new rates of Income Tax for savings and property income: 24% basic, 44% higher and 49% additional. Today savings are taxed at 20%, 40% and 45%, and rental profit is taxed at the same main rates. All of this is announced and subject to legislation.

The allowances stay as they are. You still get the Personal Allowance of £12,570, the 0% starting rate for savings on up to £5,000 (reduced by your other income), the Personal Savings Allowance of £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers, and the £1,000 property allowance.

The order matters. Your wages or profit are taxed first, then rental profit, then savings. Rental profit and savings sit on top of your other income, so they’re more likely to be taxed at the higher rates. The technical note on GOV.UK describes this order. See our guide savings and rental income tax from April 2027 for worked examples.

Things people forget

Rental profit, not rentYou’re taxed on rent less allowable costs, or on rent less £1,000 if that’s better. Mortgage interest is dealt with separately and isn’t included here.
Savings allowances shrinkThe Personal Savings Allowance is £1,000, £500 or nothing depending on your tax band, and the starting rate for savings fades out as your other income rises.
ISAs aren’t affectedInterest inside an ISA is still tax-free, so it’s left out. Only taxable interest goes in the calculator.
Scotland and WalesScotland and Wales have been given powers to set their own property rates. We haven’t seen them announced, so Scotland isn’t covered and Wales uses the UK rates.
Dividends are differentDividends have their own rates and a £500 allowance. They’re not in this calculator.
Joint accounts and propertyEnter only your own share of interest and rent.

Frequently asked questions

What are the new tax rates on savings interest?

The Budget on 28 October 2026 announced savings rates of 24%, 44% and 49% from 6 April 2027, instead of 20%, 40% and 45%. The Personal Savings Allowance and the starting rate for savings are announced to stay the same. This is subject to legislation.

What are the new tax rates on rental income?

From 6 April 2027 property income is announced to be taxed at 24%, 44% and 49% in England, Wales and Northern Ireland. In 2026/27 rental profit is taxed at the main rates of 20%, 40% and 45%. Scotland and Wales have been given powers to set their own property rates.

Does the Personal Savings Allowance change?

Not in the announcements we’ve seen. It stays at £1,000 for basic-rate taxpayers and £500 for higher-rate taxpayers, with nothing for additional-rate taxpayers. The starting rate for savings of 0% on up to £5,000 also stays.

Is the £1,000 property allowance changing?

The GOV.UK technical note says the property allowance and the Rent a Room scheme are unchanged. You can use the allowance instead of your actual rental costs if it gives a lower profit.

In what order is my income taxed?

Other income such as wages or self-employed profit comes first, then property income, then savings, then dividends. Your Personal Allowance is used against other income first.

Why does the calculator not cover Scotland?

Scotland has its own Income Tax bands and the power to set its own property rates, and its 2027/28 bands aren’t set yet. We would rather not guess, so choose England or Northern Ireland for UK rates.

Does the calculator include mortgage interest relief?

No. Relief for finance costs on rental property is a separate calculation, so a landlord with a mortgage may owe less than shown.

CalculatorTrading Allowance £3,000 CheckerAllowance or actual expenses? Do you still need to file? Compare the £1,000 limit now with the £3,000 limit announced from 6 April 2027.CalculatorTax Set-Aside CalculatorHow much to put aside from each invoice, week or month for Income Tax and Class 4 NI, after any CIS.CalculatorPayments on Account CalculatorYour 31 January and 31 July payments, the balancing payment, and whether CIS means you owe none.GuideSavings and rental income tax from April 2027The announced 24%, 44% and 49% rates on savings and property income, with worked examples and what stays the same.GuideWhat the Budget means for the self-employedThe Autumn Budget 2026 changes that matter to sole traders, CIS subbies and small landlords, with a calculator for each.GuideHow much tax to put asideReal percentages at different profits, with and without CIS, and how to build a tax pot.

Sources and review

Last checked: 28 October 2026. Every figure on this page was checked against GOV.UK and the Budget 2026 documents on that date by the HandySums team. Figures marked “announced” were announced on 28 October 2026 and are subject to legislation, so they can still change. We’ll update this page when the Finance Bill is published and whenever GOV.UK changes. HandySums is independent and not an accountancy firm — see how we check our sums.

Estimate only — not tax advice. This calculator estimates Income Tax on other income, rental profit and savings interest for England, Northern Ireland and, with UK property rates assumed, Wales. It does not cover Scotland, dividends, mortgage interest relief, rental losses, Rent a Room, pensions, Gift Aid or National Insurance. The 2027/28 rates are announced and subject to legislation. Your actual bill depends on your full Self Assessment. Verify with HMRC or a qualified accountant. The figures you enter stay in your browser and are not stored.