Guide

Budget 2026 (28 October): What's Confirmed for Your Dividend Tax, and What to Check After

Written by James Whitfield · Last reviewed 20 October 2026 · Checked against 2026/27 HMRC rates

The Autumn Budget is on Wednesday 28 October 2026. Here is what is already set in law for dividends in 2026/27 and later years, and what to check once the Budget is published. This page lists only confirmed rules; it does not predict what the Budget will contain.

Quick answer

The Budget is on 28 October 2026.¹ For 2026/27 the dividend rates are already set: 10.75% (ordinary), 35.75% (upper) and 39.35% (additional), after a £500 dividend allowance.² The rises were legislated in the Finance Act 2026.³ No change to dividend tax has been announced. We will update this page and our calculator on Budget day, as soon as the Budget documents are published.

Key facts

Budget date: 28 October 2026, with the Office for Budget Responsibility's forecast published the same day.¹
Dividend rates for 2026/27: 10.75%, 35.75% and 39.35%, up from 8.75% and 33.75% for the ordinary and upper rates in 2025/26.²
Dividend allowance: £500.²
The rate rise is section 4 of the Finance Act 2026.³
The Personal Allowance (£12,570) and basic rate limit (£37,700) are fixed up to and including 2030/31.⁴³
Savings and property income rates rise by 2 points to 22%, 42% and 47% from 6 April 2027.⁴

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What is already confirmed for dividends?

These are the figures our dividend tax calculator uses today, as published on GOV.UK and set by the Finance Act 2026.²³

Dividend allowance (taxed at 0%)	£500
Ordinary rate (basic-rate band)	10.75%
Upper rate (higher-rate band)	35.75%
Additional rate (over £125,140)	39.35%
Start date	6 April 2026

2025/26 for comparison: 8.75%, 33.75% and 39.35%. The additional rate did not change.

What else from the last Budget is already set?

Income Tax thresholds: the Personal Allowance stays at £12,570 and the basic rate limit at £37,700 for 2028/29, 2029/30 and 2030/31.⁴³ Dividends sit on top of your other income, so these bands decide which dividend rate applies.
Starting rate for savings: the £5,000 limit is fixed from 2026/27 to 2030/31.³
Savings and property income: the basic, higher and additional rates rise by 2 points to 22%, 42% and 47% from 6 April 2027.⁴ Dividend rates are not part of that April 2027 change; they rose in April 2026.
ISAs: the overall annual limit stays at £20,000 until 5 April 2031, and the government has announced a £12,000 cash limit within it from April 2027, to be set by secondary legislation.⁴ Dividends inside an ISA are tax-free.

What to check after the Budget

On 28 October, check these in the Budget documents on GOV.UK, or come back here: we will have done it for you.

The dividend rates and the £500 allowance, and the date any change starts.
Income Tax bands and the Personal Allowance, because they decide which rate your dividends meet.
For company owners: Corporation Tax rates, and how salary and dividends are taxed together.
ISA limits and the start date of any change.
The savings and property income rates announced for April 2027.

What we will update on Budget day

If the Budget changes anything for dividends, we will update this page, the calculator and our rates pages on 28 October, with the start date of each change and a link to the official document. If nothing changes, we will say so here.

Work out your dividend tax for 2026/27

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Dividend tax rates 2026/27 Dividend allowance 2026/27 Salary and dividend split Dividends and savings interest

Sources & references

Every headline figure in this guide is drawn from the official HMRC and GOV.UK sources below and reflects the confirmed 2026/27 rates. Each link opens the relevant official page in a new tab.

HM Treasury: Chancellor letter to the Treasury Select Committee, Budget 2026 date (31 July 2026) ↗ https://www.gov.uk/government/publications/chancellor-letter-to-the-treasury-select-committee-tsc-budget-2026-date
Tax on dividends ↗ https://www.gov.uk/tax-on-dividends
Finance Act 2026 (c. 11), legislation.gov.uk ↗ https://www.legislation.gov.uk/ukpga/2026/11/contents
Budget 2025: Overview of tax legislation and rates (OOTLAR) ↗ https://www.gov.uk/government/publications/budget-2025-overview-of-tax-legislation-and-rates-ootlar/budget-2025-overview-of-tax-legislation-and-rates-ootlar

Verified against published UK government guidance.

Frequently asked questions

When is the 2026 Budget?

Wednesday 28 October 2026. The Chancellor confirmed the date in a letter to the Treasury Committee on 31 July 2026, and the Office for Budget Responsibility's forecast is published the same day.

Has a change to dividend tax been announced for the Budget?

No. Nothing about the 28 October Budget has been announced. The rules that apply now are the 2026/27 rules: a £500 allowance, then 10.75%, 35.75% or 39.35%.

What are the dividend tax rates for 2026/27?

10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band, after the £500 dividend allowance. The ordinary and upper rates rose by 2 points from 6 April 2026.

Are dividends part of the April 2027 rate rise?

No. The April 2027 rise of 2 points applies to savings and property income. Dividend rates rose a year earlier, on 6 April 2026.

When will this page and the calculator be updated?

On Budget day, 28 October 2026, once the Budget documents are published on GOV.UK. If nothing changes for dividends, we will say so here and keep the calculator as it is.

Disclaimer: General information about UK tax for 2026/27, not personal tax advice. Figures assume England, Wales or Northern Ireland income tax bands unless stated.