You'll pay taxes on your CD interest regardless of whether you withdraw the money. For example, let's say you open a five-year CD right now and plan to leave it untouched until the term is up.

Earnings before interest and taxes (EBIT) is a useful financial metric. Here's what investors need to know about it.

Then, any earnings you generate from the account—including interest—are tax-free. Interest is taxed as regular income, and you’ll incur a 10% penalty if you make a non-qualified distribution ...

Here's how income tax works. ... What are the tax brackets for tax years 2024 and 2025? What to know ahead of ... but it does make residents pay a 5% tax on income earned from interest and ...

Here's what you need to know about how to pay taxes on your CD interest -- and how much you might owe. Read more: Best Tax Software of 2025 How are CDs taxed? "Interest paid on your CDs will be ...