UK Dividend Tax Calculator 2026/27
Tax on dividends for 2026/27 on top of your salary or other income, with the £500 allowance and the new 10.75% and 35.75% rates.
Result
Dividend tax: £3,396.25Estimate
Dividends in an ISA or pension are not taxed and should be left out.
- Covered by the £500 allowance
- £500.00Estimate
- Taxed at 10.75%
- £0.00Estimate
- Taxed at 35.75%
- £9,500.00Estimate
- Taxed at 39.35%
- £0.00Estimate
- As a share of the dividends
- 33.96%Estimate
https://calcgallery.com/income-tax/uk-dividend-tax-calculator/
An estimate from the published rates for the tax year shown, for the situation described on this page. It is not a tax return or tax advice. Rules change with each budget, and your own circumstances can change the answer. Check it against your payslip and the tax authority’s own calculator, and confirm anything that matters with a qualified tax adviser. Read the full disclaimer
How to use the UK Dividend Tax Calculator 2026/27
- Enter your salary and other income apart from dividends, before tax.
- Enter the dividends you receive in the year outside ISAs and pensions.
- Read the dividend tax and how much falls in each band.
How dividends are stacked
Income tax treats your income in layers: earnings first, then savings, then dividends on top. The page places your dividends above your other income and taxes each part at the rate for the band it falls in.
start = other income above the personal allowancefirst £500 of dividends at 0% (the dividend allowance)up to £37,700 of taxable income 10.75%up to £125,140 35.75%above £125,140 39.35%If your other income is below the personal allowance, the unused allowance covers dividends first. The allowance taper above £100,000 uses your total income, dividends included.
With your numbers
- Dividends are taxed as the top slice of income, after your salary has used the personal allowance and the bands
- The first £500 is taxed at 0% but still fills the band it sits in
Quick reference
Dividends in an ISA or pension are not taxed and should be left out.
| Example | Dividend tax |
|---|---|
| £60,000 salary, £10,000 dividends | £3,396.25 |
| £29,570 salary, £3,000 dividends | £268.75 |
| £12,570 salary, £40,000 dividends | £4,821.25 |
| £0 salary, £20,000 dividends | £744.98 |
| £130,000 salary, £5,000 dividends | £1,770.75 |
| £45,000 salary, £500 dividends | £0.00 |
Where the numbers come from
The fixed figures this calculator relies on, and the published source each one was checked against. How the calculators are built and checked
7 sources
HMRC, Rates and thresholds for employers 2026 to 2027, https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027: "£12,570 per year"
Used for
- Personal allowance.
HMRC, Income Tax rates and allowances, https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past: "goes down by £1 for every £2 of income above the £100,000 limit"
Used for
- Income above which the personal allowance falls by £1 for every £2.
HMRC, Rates and thresholds for employers 2026 to 2027, https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027: basic rate "Up to £37,700"
Used for
- England, Wales and NI: taxable income above this is taxed at the higher rate.
HMRC, Rates and thresholds for employers 2026 to 2027, https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027: "Above £125,140"
Used for
- Taxable income above this is taxed at the additional (or Scottish top) rate.
GOV.UK, Tax on dividends, https://www.gov.uk/tax-on-dividends
Used for
- Dividend allowance.
- Dividend additional rate.
HMRC, Income Tax rates and allowances, 2026 to 2027 column, https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past, and GOV.UK, Tax on dividends, https://www.gov.uk/tax-on-dividends; announced in HM Treasury, Overview of tax legislation and rates (Budget 2025): "increased by 2 percentage points to 10.75%"
Used for
- Dividend ordinary rate, from 6 April 2026.
HMRC, Income Tax rates and allowances, 2026 to 2027 column, https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past, and GOV.UK, Tax on dividends, https://www.gov.uk/tax-on-dividends; announced in HM Treasury, Overview of tax legislation and rates (Budget 2025)
Used for
- Dividend upper rate, from 6 April 2026.
Common questions about the UK Dividend Tax Calculator 2026/27
- What are the dividend tax rates for 2026/27?
- 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. The basic and higher rates went up by two percentage points from 6 April 2026. The first £500 of dividends is covered by the dividend allowance.
- Why do dividends get taxed at a higher rate than my salary would suggest?
- Dividends are treated as the top slice of your income. Your salary uses up the personal allowance and the basic rate band first, so dividends often land in a higher band than your salary alone.
- Does the £500 allowance mean £500 is tax-free?
- It is taxed at 0%, but it still counts as income and uses up £500 of the band it falls in. That can push later dividends into the higher rate band.
- Do Scottish taxpayers pay different dividend tax?
- No. Scottish rates and bands apply only to earnings and pensions. Dividends are taxed at the UK dividend rates, with the UK bands, wherever you live.