2026/27 estimate

Dividend Tax on £5,000 2026/27

After the £500 dividend allowance, a basic-rate taxpayer (£30,000 salary) pays approximately £394 in dividend tax on £5,000, and a higher-rate taxpayer (£55,000 salary) pays approximately £1,519.

Basic-rate taxpayer scenario
£30,000 salary + £5,000 dividends
Dividend income
£5,000
Allowance used
£500
Taxable dividends
£4,500
Dividend tax due
£394
£4,500 at 8.75% basic rate
Effective dividend rate: 7.9% · Net dividends: £4,606
Higher-rate taxpayer scenario
£55,000 salary + £5,000 dividends
Dividend income
£5,000
Allowance used
£500
Taxable dividends
£4,500
Dividend tax due
£1,519
£4,500 at 33.75% higher rate
Effective dividend rate: 30.4% · Net dividends: £3,481

How dividend tax on £5,000 is calculated (2026/27)

Step 1, Personal Allowance. Salary fills the Personal Allowance (£12,570) first. At £30,000 the full allowance is used, so dividends get no PA shelter. Same at £55,000.

Step 2, Dividend allowance. The first £500 of dividends is free from dividend tax. After that, £4,500 is potentially taxable.

Step 3, Bands. Salary fills the basic-rate band first. A £30,000 salary leaves £20,270 of the basic-rate band for dividends at 8.75%. A £55,000 salary already exceeds £50,270, so all dividends fall in the higher-rate band at 33.75%.

Your actual position may differ. These are illustrative scenarios. Use the calculator with your real salary and pension contributions for a precise figure.

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The calculator handles all UK dividend tax bands, pension deductions and the Personal Allowance taper.
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Dividend tax for other amounts
£5,000 £10,000 £20,000 £50,000 £100,000
Also see: detailed breakdown for £5,000
Estimates only, not financial or tax advice. 2026/27 figures: £500 dividend allowance, 8.75% basic, 33.75% higher, 39.35% additional rate, Personal Allowance £12,570. Scenarios use fixed salaries for illustration. Your actual tax depends on your full income and circumstances. Check GOV.UK: Tax on dividends.