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 taxAdjust figures — results update instantly.
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.
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.
Add your annual salary or other income and total dividend income for the tax year. Include any pension contributions to reduce your taxable 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.
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.
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.
In-depth guides covering every aspect of UK dividend tax — rates, allowances, scenarios and worked examples.
8.75% on dividends above the £500 allowance for income up to £50,270.
→33.75% on dividends in the higher-rate band (£50,271–£125,140).
→39.35% on dividends above the £125,140 threshold.
→Worked example and planning guidance for income above £125,140.
→ISA dividends are tax-free and do not use the £500 allowance.
→How unused Personal Allowance can shelter dividend income from tax.
→State pension, Personal Allowance and the £500 allowance in retirement.
→Limited company salary-plus-dividends structure explained with worked example.
→When to register, what to declare and records to keep.
Specialised tools for different dividend scenarios — all free, all updated for 2026/27.
Estimate dividend tax at 8.75%, 33.75% or 39.35% after the £500 allowance and Personal Allowance.
Main calculatorModel salary-plus-dividends combinations for company directors and owner-managers.
DirectorsSee how much basic-rate band remains for dividends after your salary is accounted for.
PlanningCalculate dividend tax on portfolio income from shares, funds and investment trusts.
InvestorsCheck how much of the £500 dividend allowance you have used and what remains tax-free.
AllowanceUKDividendTaxCalculator is part of the UK Money Calculators network — free, independent tools for estimating UK tax and finances.
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.