Estimate tax on dividends from UK or overseas shares held outside an ISA or pension. Dividends inside a Stocks & Shares ISA are completely tax-free — only non-ISA dividends are counted here.
Estimates only. Does not include income tax on employment income or capital gains tax.
ISA tip: Dividends inside a Stocks & Shares ISA are completely tax-free — no dividend tax regardless of amount. Consider sheltering high-yield investments in your ISA allowance first. The 2026/27 ISA allowance is £20,000.
When you hold shares or funds outside an ISA or pension, any dividends received count towards your taxable income. Your employment or pension income fills the tax bands first; dividends then sit on top. The £500 dividend allowance and any remaining Personal Allowance reduce the taxable amount before the relevant dividend rate is applied.
UK dividend tax applies to overseas dividends received outside an ISA or pension in the same way as UK dividends. You may also have had foreign withholding tax deducted at source — you can often claim relief against your UK tax bill via Self Assessment.
You must file Self Assessment if your total dividend income exceeds £1,000 in a tax year (or £500 if you are already required to file). HMRC cannot collect dividend tax through PAYE.
This calculator treats all dividend income equally regardless of source. Note that some fund distributions may be classified as interest (not dividends) and taxed differently — check your fund documentation or annual tax certificate.
Disclaimer: Results are estimates based on 2026/27 rates. This tool does not constitute financial or tax advice.