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Dividend Allowance Calculator 2026/27

The 2026/27 dividend allowance is £500. This calculator shows how it applies alongside your personal allowance and income — and how much dividend tax, if any, you owe.

Dividend Allowance

2026/27 · £500 allowance
£
£
Personal allowance available for dividends£0
Dividend allowance (£500)£0
Taxable dividends£0
Estimated dividend tax£0

Estimates only. Does not include income tax on salary or National Insurance.

Quick answer: for 2026/27 the first £500 of dividends is tax-free, then taxed at 10.75% (basic), 35.75% (higher) or 39.35% (additional) — with no National Insurance on dividends.
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How the dividend allowance works

The £500 dividend allowance is the amount of dividend income you can receive tax-free each year, on top of any remaining Personal Allowance. It was cut from £1,000 to £500 in April 2024. Every taxpayer gets it regardless of tax band — but your band determines the rate on dividends above it.

Salary or pension income uses the Personal Allowance first. Any unused Personal Allowance shelters dividend income before the £500 allowance is applied.

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Frequently asked questions

  • What is the dividend allowance for 2026/27?

    The dividend allowance is £500 for 2026/27. This has been the allowance since April 2024, reduced from the previous £1,000. Any dividends within this amount are free from dividend tax, regardless of your tax band.

  • Does the dividend allowance stack with the Personal Allowance?

    Yes. The Personal Allowance (£12,570) is applied to your income first. Any unused Personal Allowance can shelter dividend income. The £500 dividend allowance then applies to dividends above the remaining Personal Allowance.

  • Can I carry forward unused dividend allowance?

    No. The dividend allowance cannot be carried forward to a future tax year. Any unused portion is simply lost. It resets each 6 April.

Disclaimer: Results are estimates based on 2026/27 rates. This tool does not constitute financial or tax advice.

Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.

Written and reviewed by James Whitfield and the editorial team.

Every figure is checked against current HMRC and GOV.UK guidance and reviewed for the 2026/27 tax year. We explain the numbers in plain English with worked examples. Editorial standards · About us