Dividend Tax Calculator (UK)
Enter your other income and your dividends to see the tax you owe. The dividend allowance is £500 for 2026/27.
| Band | Dividends | Rate | Tax |
|---|---|---|---|
| Dividend allowance | £500 | 0% | £0 |
| Basic rate | £9,500 | 10.75% | £1,021 |
| Total dividend tax | £10,000 | 10.2% | £1,021 |
Dividends are taxed on top of your other income. Companies also pay Corporation Tax on profits before dividends are paid, and this calculator does not include that.
Dividend tax rates for 2026/27
| Tax band | Dividend rate |
|---|---|
| Dividend allowance (first £500) | 0% |
| Basic rate taxpayers | 10.75% |
| Higher rate taxpayers | 35.75% |
| Additional rate taxpayers | 39.35% |
Dividends are taxed on top of your other income, so your salary or profits decide which rate applies. Your tax-free Personal Allowance of £12,570 is used against other income first, then dividends.
Example: on a £30,000 salary plus £10,000 of dividends, £1,021 of dividend tax is due, after the £500 allowance.
Who pays dividend tax?
You pay it on dividends from shares outside an ISA or pension, and on dividends you pay yourself as a company director. Dividends inside a Stocks and Shares ISA or pension are tax-free.
Paying the tax
If your dividends are over the allowance you usually report them on a Self Assessment tax return, or ask HMRC to change your tax code if the amount is small.
Director dividends and Corporation Tax
A limited company pays Corporation Tax on its profits before paying dividends, and dividends are paid from profit after tax. The dividend tax calculated here is the director or shareholder’s personal tax and does not include Corporation Tax.
Sources: GOV.UK: Tax on dividends. Figures last checked on 8 October 2026.
Frequently asked questions
What is the dividend allowance for 2026/27?
It is £500. The first £500 of dividends is not taxed, but it still counts towards your tax bands.
What are the dividend tax rates in 2026/27?
10.75% for basic rate, 35.75% for higher rate and 39.35% for additional rate taxpayers.
Do I pay dividend tax on ISA dividends?
No. Dividends from shares held in an ISA or pension are tax-free and do not count towards the allowance.
How are dividends and salary taxed together?
Salary and other income use up your Personal Allowance and basic-rate band first. Dividends are stacked on top, so a larger salary can push dividends into a higher tax rate.
More from UK Answers
Figures are for the 2026/27 tax year from official sources and are estimates for guidance only, not financial or legal advice. Printed from ukanswers.co.uk.