Calculator

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.

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.

Related calculators & guides

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.