More than two million pensioners will pay tax on their savings this year as a result of high interest rates and frozen tax thresholds, figures show. In total, 517,000 pensioners owed income tax on savings interest in 2022-23, rising to a forecasted 2.1 million in 2026-27. He added: "The personal savings allowance has remained unchanged, so more people are being pulled into the tax net as their incomes and savings interest rise. This reduces to £500 for higher-rate taxpayers, while additional-rate taxpayers have to pay income tax on all savings interest earned outside an Isa. In total, 4.5 million savers are expected to pay tax on bank interest this year.