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.
Estimates only. Does not include income tax on salary or National Insurance.
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 reduced from £1,000 to £500 from April 2024. The allowance applies to all taxpayers regardless of their tax band — but your tax band determines the rate on dividends above the allowance.
Your salary or pension income uses the Personal Allowance first. Any unused Personal Allowance then shelters dividend income before the £500 dividend allowance is applied.
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.
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.
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.