Dividend Tax Calculator UK
Calculate how much dividend tax you'll pay in the UK for 2026/27. Enter your dividends and other income to see your £500 dividend allowance, taxable dividends and the tax due at the 8.75%, 33.75% and 39.35% dividend rates.
Calculator
What this means
Dividends are taxed on top of your other income. The first £500 of dividends each year is tax-free under the dividend allowance, and any personal allowance not used by your other income can also be set against them. Dividends above that are taxed at 8.75% within the basic-rate band, 33.75% in the higher-rate band and 39.35% in the additional-rate band — the same rates across the whole UK, including Scotland.
How to use this calculator
- Enter your salary and your dividend income.
- The calculator applies the £500 dividend allowance and the right rates.
- See the dividend tax due.
Worked example
A basic-rate taxpayer receives £3,000 in dividends.
- The first £500 is covered by the dividend allowance.
- £2,500 is taxed at the 8.75% basic dividend rate = £218.75.
You'd owe about £219 in dividend tax.
Who this is for
- Company directors paying themselves dividends.
- Investors with shares held outside an ISA.
- Anyone planning a salary-versus-dividend split.
How dividend tax works in 2026/27
The first £500 of dividends is tax-free. Above that, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate) and 39.35% (additional rate), depending on your total income.
Dividends sit on top of other income to decide the rate. Holding shares in an ISA shelters dividends from tax entirely, which is why ISAs are popular with investors.
Frequently asked questions
After the £500 dividend allowance, dividends are taxed at 8.75% for basic-rate taxpayers, 33.75% for higher-rate taxpayers and 39.35% for additional-rate taxpayers. These rates apply UK-wide, including Scotland.
The dividend allowance is £500 for 2026/27. On top of this, any part of your £12,570 personal allowance not used by other income can also cover dividends tax-free.
Holding shares and funds inside a Stocks & Shares ISA means dividends are completely tax-free and don't use your £500 allowance. You can invest up to £20,000 a year across ISAs.
For 2026/27 it's £500. You pay no tax on the first £500 of dividend income; above that, dividend tax rates apply based on your income tax band.
No. Dividends from shares or funds held inside a stocks and shares ISA are completely tax-free and don't use your dividend allowance.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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