US Savings Tax at Maturity Calculator

Estimate tax on savings interest using a combined federal and state marginal rate, with tax applied at the end of the term.

27% is an example (22% federal + 5% state), not a statutory rate. Interest is ordinary income; banks generally do not withhold it. Use your own marginal rate. IRA/401(k) accounts can defer tax.

US Savings Tax at Maturity Calculation Method

Balance at maturity

Payout after tax

Total deposited $6,000

Interest before tax $132

Tax $36

Interest after tax $96

Payout at maturity $6,096

About This Calculator

US savings interest is generally taxed as ordinary income at the federal level and may also be taxed by your state. There is no single national rate: your marginal federal bracket and state rate determine the result.

This page estimates the tax when it is applied once at the end of the term, so the gross interest compounds for the whole period. Use the combined marginal rate that applies to your income.

The default 27% is an example (22% federal + 5% state), not a statutory rate. Banks usually do not withhold tax on interest; you may need to make estimated payments or increase withholding elsewhere.

Key Formula:Gross interest = final balance − deposits ; Tax = gross interest × rate

Frequently Asked Questions

At what rate is savings interest taxed in the US?

Interest is ordinary income. It is taxed at your federal marginal rate plus any state rate. A saver in the 22% federal bracket with a 5% state rate faces about 27%.

Do banks withhold tax on savings interest?

Usually no. Banks report interest on Form 1099-INT. You pay tax through withholding from wages, estimated payments or a year-end balance. Backup withholding of 24% can apply if your TIN is missing.

Can I avoid tax on savings interest?

Tax-deferred accounts such as an IRA or 401(k) can defer tax, and some municipal bond interest is exempt from federal tax. Taxable accounts do not defer interest.

Why is the at-maturity result higher than the monthly-tax result?

Because the tax stays invested until maturity. Paying tax earlier reduces the balance that earns interest, so the final after-tax amount is slightly lower.

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Sources & last update

2026-10-19