Is High-Yield Savings Account Interest Taxable?

Savings account interest is taxable, but don't let that scare you away from a high-yield savings account. Here's what you need to know.

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It's almost time to file your 2023 federal tax return, and if you took advantage of high interest rates on high-yield savings accounts last year, you might be wondering if your high-yield savings account interest is taxable. The answer is yes, but these types of accounts can offer the potential for significant savings, so don't let that discourage you from opening one. 

Here's what you need to know.

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Tax RateSingle or Married Filing SeparatelyHead of HouseholdMarried Filing Jointly
10%Up to $11,000Up to $15,700Up tp $22,000
12%$11,001 to $44,725$15,701 to $59,850$22,001 to $89,450
22%$44,726 to $95,375$59,851 to $95,350$89,451 to $190,750
24%$95,376 to $182,100$95,351 to $182,100$190,751 to $364,200
32%$182,101 to $231,250$182,101 to $231,250$364,201 to $462,500
35%$231,251 to $578,100 (or to $346,875 for MFS)$231,251 to $578,100$462,501 to $693,750
37%More than $578,100 ($346,875 for MFS)More than $578,100More than $693,750

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Katelyn Washington
Tax Writer

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.