Updated for 2026/27

Dividend Tax Calculator UK 2026/27

Estimate how much dividend tax you may owe in 2026/27 based on your dividend income, salary or other taxable income, and the current dividend allowance.

Calculate dividend tax
£500 dividend allowance 8.75% basic rate 33.75% higher rate 39.35% additional rate Updated April 2026 Free to use

Dividend Tax Calculator

Adjust figures — results update instantly.

Tax year 2026/27
Reduces taxable non-dividend income.
£831 estimated dividend tax 8.3% effective rate
Total div tax
£831
Net dividends
£9,169
Effective rate
8.3%
Tax-free dividends £500
At 8.75% basic £9,500
At 33.75% higher £0
At 39.35% additional £0

Your dividend headroom

Dividends stack on top of your salary, so the rate you pay depends on how much room is left in each tax band. Here's how much more you could take before crossing into the next rate — updates live with the figures above.

Still at 8.75%
£0
more in dividends before the higher rate (33.75%) starts — i.e. until total income hits £50,270.
Still under 39.35%
£0
more before the additional rate (39.35%) starts — i.e. until total income hits £125,140.
£100k allowance taper
£0
more before total income passes £100,000, where your Personal Allowance starts to be withdrawn (£1 lost per £2 over).

Thresholds for 2026/27: basic-rate limit £50,270, additional-rate threshold £125,140, Personal Allowance taper from £100,000. Headroom assumes your salary fills the bands first and ignores other reliefs. Pension contributions extend your bands. Estimates only — not personal advice.

How it works

Three steps to estimate your dividend tax

01

Enter salary and dividends

Add your annual salary or other income and total dividend income for the tax year. Include any pension contributions to reduce your taxable income.

02

Dividends sit on top of other income

Your salary fills the Personal Allowance and tax bands first. Dividends then sit on top — so a higher salary means more dividends are taxed at higher rates.

03

See tax at each band

Review dividend tax at 8.75%, 33.75% and 39.35%, the £500 allowance used, net dividend income after tax, and effective dividend tax rate.

Worked example

£40,000 salary and £10,000 dividends

The salary of £40,000 uses most of the Personal Allowance and basic-rate band. Taxable salary: £40,000 − £12,570 = £27,430. This uses £27,430 of the £37,700 basic-rate band, leaving £10,270 unused.

After the £500 dividend allowance, taxable dividends are £9,500. All £9,500 falls within the remaining £10,270 of the basic-rate band. Dividend tax = 8.75% × £9,500 = approximately £1,021.

Net dividend income after tax: approximately £8,979. Effective dividend tax rate: approximately 10.2%. If salary were £55,000 instead, dividends would fall into the higher-rate band at 33.75%. Try adjusting the salary figure above.

Guides

Dividend tax guides 2026/27

In-depth guides covering every aspect of UK dividend tax — rates, allowances, scenarios and worked examples.

Basic rate

Dividend Tax for Basic-Rate Taxpayers 2026/27

8.75% on dividends above the £500 allowance for income up to £50,270.

Higher rate

Dividend Tax for Higher-Rate Taxpayers 2026/27

33.75% on dividends in the higher-rate band (£50,271–£125,140).

Additional rate

Dividend Tax for Additional-Rate Taxpayers 2026/27

39.35% on dividends above the £125,140 threshold.

39.35% rate

Additional-Rate Dividend Tax 2026/27

Worked example and planning guidance for income above £125,140.

ISAs

Dividend Tax and ISAs 2026/27

ISA dividends are tax-free and do not use the £500 allowance.

Allowances

Dividends and the Personal Allowance 2026/27

How unused Personal Allowance can shelter dividend income from tax.

Retirement

Dividend Tax for Retirees 2026/27

State pension, Personal Allowance and the £500 allowance in retirement.

Contractors

Dividend Tax for Contractors 2026/27

Limited company salary-plus-dividends structure explained with worked example.

Self Assessment

Dividends and Self Assessment 2026/27

When to register, what to declare and records to keep.

Calculators

Dividend tax calculators

Specialised tools for different dividend scenarios — all free, all updated for 2026/27.

UK Dividend Tax Calculator

Estimate dividend tax at 8.75%, 33.75% or 39.35% after the £500 allowance and Personal Allowance.

Main calculator

Director Dividend Calculator

Model salary-plus-dividends combinations for company directors and owner-managers.

Directors

Dividend After Salary Calculator

See how much basic-rate band remains for dividends after your salary is accounted for.

Planning

Investment Dividend Tax Calculator

Calculate dividend tax on portfolio income from shares, funds and investment trusts.

Investors

Dividend Allowance Calculator

Check how much of the £500 dividend allowance you have used and what remains tax-free.

Allowance
Calculator suite

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UKDividendTaxCalculator is part of the UK Money Calculators network — free, independent tools for estimating UK tax and finances.

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Estimate pension tax relief at 20%, 40% and 45% under relief at source, net pay and salary sacrifice.
Visit PensionTaxReliefCalculator.co.uk →
FAQ

Dividend tax — common questions

What is the dividend allowance for 2026/27?
The dividend allowance is £500 for 2026/27. Dividends within this amount are free from dividend tax, regardless of which tax band you are in. This £500 sits on top of your Personal Allowance.
What are the dividend tax rates for 2026/27?
The dividend tax rates for 2026/27 are 8.75% in the basic-rate band (income up to £50,270), 33.75% in the higher-rate band (£50,271–£125,140), and 39.35% in the additional-rate band (above £125,140).
Are dividends from ISAs taxed?
No. Dividends received within a Stocks and Shares ISA are completely free from UK income tax and dividend tax. Only dividends paid outside an ISA count towards your dividend allowance and are subject to dividend tax.
Why does my salary affect my dividend tax rate?
Dividends are treated as the top slice of your income. Your salary and other non-dividend income fill the Personal Allowance and the basic-rate band first. Dividends then sit on top, so a higher salary pushes more dividends into higher tax bands. This is why the calculator asks for your salary.
Do I need to complete a Self Assessment for dividend income?
You must register for Self Assessment if your dividend income exceeds £1,000 in a tax year (or £500 if you are already required to file). HMRC cannot automatically collect dividend tax through PAYE, so you must declare it yourself.
Is corporation tax separate from dividend tax?
Yes. Corporation tax is paid by the company on its profits before any dividends are paid. When a dividend is then paid to a shareholder, dividend tax is calculated on the shareholder's personal income. This calculator covers only the personal dividend tax, not corporation tax on profits.
Methodology

How we calculate dividend tax

Salary and other non-dividend income fills the Personal Allowance first, then the basic-rate band. Dividends sit on top. After the £500 dividend allowance, taxable dividends are split across the remaining basic-rate band (8.75%), higher-rate band (33.75%) and additional-rate band (39.35%). The Personal Allowance tapers to zero above £125,140 of total income.

This calculator does not cover corporation tax on company profits, ISA dividends (which are tax-free), Scotland-specific income tax rates (dividend rates are the same UK-wide), or trust income.

Read full methodology →

Published by the UK Money Calculators editorial team · Last updated for the 2026/27 tax year · Calculations are estimates only and are not financial or tax advice. · GOV.UK: Tax on dividends