UK · Tax year 2026–27 (6 April 2026 to 5 April 2027)

UK dividend tax calculator.

Enter your other taxable income and your dividends. Dividends are taxed as the top slice of your income, after the Personal Allowance and the £500 dividend allowance.

As of 30 September 2026. Rates checked against GOV.UK for the 2026–27 tax year. A planning estimate, not an HMRC calculation or tax advice.

Your income

Estimate

Enter your income and dividends to see the tax.

2026–27 rates and formula

Band	Dividend rate
Dividend allowance (first £500)	0%
Basic rate (taxable income up to £37,700)	10.75%
Higher rate (£37,701 to £125,140)	35.75%
Additional rate (over £125,140)	39.35%

Method: (1) the Personal Allowance of £12,570 comes off your other income first, tapering by £1 for every £2 of income above £100,000 and reaching zero at £125,140; (2) any allowance left over shelters dividends, which are then untaxed; (3) the next £500 of dividends is the 0% dividend allowance, which still fills band space; (4) the rest is taxed at 10.75%, 35.75% or 39.35% according to where it lands in the stack above your other income.

Worked example

Salary £45,000 and dividends £10,000. Taxable other income is £45,000 − £12,570 = £32,430, leaving £5,270 of basic-rate band. The first £500 of dividends is free, the next £4,770 is taxed at 10.75% (£512.78) and the remaining £4,730 at 35.75% (£1,690.98). Total dividend tax: £2,203.75, an effective 22.0% on the dividends.

Limits of this estimate

It assumes the England, Wales and Northern Ireland band thresholds, treats “other income” as non-savings income, and ignores savings interest, Gift Aid, pension relief, marriage allowance and Corporation Tax paid by your company. Scottish taxpayers pay Scottish rates on non-dividend income, so check the result against HMRC.

FAQ

What is the UK dividend allowance for 2026-27?

£500 a year. Dividends inside it are taxed at 0%, but they still count towards your income when working out which tax band you are in.

What are the UK dividend tax rates for 2026-27?

10.75% for basic-rate taxpayers, 35.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers, per GOV.UK.

Are dividends inside the Personal Allowance taxed?

No. You do not pay tax on dividend income that falls within your Personal Allowance. Other income uses the allowance first, and dividends are treated as the top slice of your income.

Does this include dividends from my own limited company?

Yes, the personal tax on dividends is the same wherever they come from. It does not model Corporation Tax on the company's profits, Scottish bands for other income, or dividends held in an ISA, which are tax-free.

GOV.UK: Tax on dividends GOV.UK: Income Tax rates and bands