Dividend Tax Calculator UK
See how much tax you pay on dividends in 2026/27, based on your salary and the new dividend tax rates.
Dividend tax 2026/27
£4,821.25
Plus £0.00 Income Tax and £0.00 NI on the salary
- Total tax
- £4,821
- Take-home
- £47,749
- Per month
- £3,979
How your dividends are taxed
| Band | Dividends in band | Rate | Tax |
|---|---|---|---|
| Dividend Allowance | £500.00 | 0% | £0.00 |
| Basic rate | £37,200.00 | 10.75% | £3,999.00 |
| Higher rate | £2,300.00 | 35.75% | £822.25 |
Dividend tax rates 2026/27
| Band | Taxable income | Dividend rate |
|---|---|---|
| Dividend allowance | First £500 of dividends | 0% |
| Basic rate | £12,571 to £50,270 | 10.75% |
| Higher rate | £50,271 to £125,140 | 35.75% |
| Additional rate | Over £125,140 | 39.35% |
Dividend tax examples
| Salary | Dividends | Dividend tax | Total take-home |
|---|---|---|---|
| £12,570 | £20,000 | £2,096.25 | £30,473.75 |
| £12,570 | £37,700 | £3,999.00 | £46,271.00 |
| £12,570 | £50,000 | £8,396.25 | £54,173.75 |
| £30,000 | £10,000 | £1,021.25 | £34,098.35 |
| £50,000 | £10,000 | £3,396.25 | £46,123.35 |
| £12,570 | £100,000 | £27,842.50 | £83,470.50 |
Salary taxed at England, Wales and Northern Ireland rates with employee NI.
Working out your company's tax first? Try the Corporation Tax calculator.
Frequently asked questions
What are the dividend tax rates for 2026/27?
From 6 April 2026 dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. The ordinary and upper rates each rose by 2 percentage points; the additional rate is unchanged.
How much is the dividend allowance?
The dividend allowance is £500 for 2026/27. The first £500 of dividends is taxed at 0%, but it still counts towards your income and uses up part of your tax band.
Do Scottish taxpayers pay different dividend tax?
No. Dividend tax uses the UK-wide bands and rates, even if you pay Scottish Income Tax on your salary.
Why are dividends taxed after my salary?
HMRC treats dividends as the top slice of your income. Your salary uses up the Personal Allowance and tax bands first, and the dividends fill whatever is left.
Do I pay National Insurance on dividends?
No. Dividends are not subject to National Insurance, which is why many company directors take a small salary and the rest as dividends.
When do I pay dividend tax?
If your dividends are over £10,000 you must file a Self Assessment tax return. Tax for 2026/27 is due by 31 January 2028.
Source: GOV.UK, "Tax on dividends" and the rates announced for 2026/27. Doesn't include savings interest or the Personal Savings Allowance. Guidance only, not tax advice.