SavingsTools

After-tax interest calculator

Estimate how much taxable interest you keep after applying a tax rate you enter.

Your interest and tax rate

Enter your taxable bank interest before tax. For the rate, use the percentage you expect to pay on that extra income. If an extra $100 of interest would add $22 to the taxes you’re estimating, enter 22%.

Enter the marginal rate you want to apply to this interest.

Your estimate

Interest after estimated tax $351.00
Estimated tax on interest
$99.00

For taxable U.S. bank interest. Applies one user-entered rate to the full amount. Your actual tax depends on your income and the account’s tax treatment.

How tax changes what you keep

Worked example

At a 22% tax rate, $450 of taxable interest gives an estimated tax of $99 and leaves $351.

Multiply taxable interest by the rate you enter. Round the estimated tax to cents and subtract it from the interest before tax.

Sources

Related calculators

How to estimate tax on bank interest

Use the rate that applies to the additional interest

If you’re estimating federal tax, look up the bracket for your filing status and the tax year. Your marginal rate applies to the next dollars of taxable income. If the interest spans two brackets, calculate the portions separately and add the estimated tax. A single rate is most useful when it applies to all the interest you enter.

Run separate estimates if you want to compare federal tax with another jurisdiction’s treatment. Check whether that jurisdiction taxes the interest before including its rate.

Use interest earned as the input

For a savings account or CD, start with the interest amount rather than your total balance. For tax reporting, use the information from the institution and the IRS rules for when the interest is reportable. Taxable interest generally has to be reported even if no Form 1099-INT arrives.