Calculator

UK Dividend Tax Calculator 2026/27

Estimate dividend tax due after the £500 dividend allowance, split across basic (8.75%), higher (33.75%) and additional (39.35%) rate bands.

Dividend Tax

2026/27 · £500 allowance
£
£
Dividend allowance used£0
Basic rate dividend tax (8.75%)£0
Higher rate dividend tax (33.75%)£0
Additional rate dividend tax (39.35%)£0
Total dividend tax£0
Income tax on employment income£0

How dividend tax is calculated

Dividends are taxed after all other income. The £500 dividend allowance shelters the first £500 of dividends from tax. Above that, the rate depends on which income tax band the dividends fall in:

Employment and other non-dividend income fills the lower bands first, pushing dividends into higher bands if applicable.

Frequently asked questions

What is the dividend allowance for 2026/27?

The dividend allowance is £500 for 2026/27 (reduced from £1,000 in 2023/24 and £2,000 previously). Dividends within the allowance are not taxed, but they still use up your basic or higher rate band when determining how much tax-free room remains.

Do I need to declare dividends on Self Assessment?

Yes, if your total dividend income exceeds £500. You must register for Self Assessment and file a tax return. HMRC cannot collect dividend tax through PAYE.

Are dividends from ISAs taxable?

No. Dividends received within a Stocks and Shares ISA are completely free from UK tax and do not need to be declared on a tax return.

Does the personal allowance affect dividend tax?

Yes. If your total income (employment plus dividends) is within the personal allowance (£12,570), no tax is due on any of it. The personal allowance is used up first by non-dividend income, with any remaining allowance set against dividends.

Official sources

This calculator provides estimates only. It does not constitute financial, tax or legal advice. Always check current GOV.UK guidance and consult a qualified adviser before making decisions.