A UK dividend tax calculator for 2026/27 and 2025/26
This dividend tax calculator for the UK works out the income tax on dividends for the 2026/27 tax year (6 April 2026 to 5 April 2027) and the 2025/26 year. Enter your salary or other income and the dividends you received, choose where you live, and it shows the tax on each slice of dividends, the £500 dividend allowance, your total income tax and what you keep.
It is built for company directors paying themselves a small salary and dividends, investors with shares outside an ISA, and anyone checking a Self Assessment figure. The 2026/27 dividend rates went up by two percentage points — the ordinary rate from 8.75% to 10.75% and the upper rate from 33.75% to 35.75% — so the same dividend now costs more. Switch the tax year to compare.
Figures come from GOV.UK (checked 24 October 2026) and the sums run in your browser. Results are estimates for planning, not tax advice; your tax return or an accountant decides the final figure.
How to use the UK Dividend Tax Calculator
- Pick the tax year: 2026/27 or 2025/26.
- Choose where you live. Scottish taxpayers get Scottish bands on their salary; dividends stay on UK rates.
- Enter your other income before tax — salary, pension, self-employed or rental profit.
- Enter your dividends for the year, leaving out dividends from shares held in an ISA.
- Read the dividend tax, the band table and the notes, then copy the summary if you need it.
UK Dividend Tax Calculator features
Two tax years side by side
Switch between 2026/27 (10.75%, 35.75%, 39.35%) and 2025/26 (8.75%, 33.75%, 39.35%) to see what the rate rise costs you.
Dividends stacked on top of salary
Dividends are taxed as the top slice of income, so your salary decides which dividend rate applies.
Personal Allowance and taper
Unused allowance shelters dividends first; above £100,000 the allowance falls by £1 for every £2 and the tool shows the true extra tax.
Scotland handled correctly
Salary uses the six Scottish bands; dividends use the UK dividend rates and the UK basic rate band.
Band-by-band table
Shows how much of your dividends falls in each band, how much the £500 allowance covers, and the tax on the rest.
How dividend tax is worked out
Add your dividends to your other income. The Personal Allowance (£12,570) is used against your salary first and then against dividends. Dividends are then taxed as the top slice: the part that lands in the basic rate band (the first £37,700 of taxable income) is taxed at the ordinary rate, the part up to £125,140 at the upper rate and anything above at the additional rate. The first £500 of taxable dividends is taxed at 0% under the dividend allowance — but it still uses up band space.
Worked example (2026/27): a director takes a £12,570 salary and £50,000 of dividends. The salary uses the whole Personal Allowance. Of the dividends, £500 is covered by the allowance and £37,200 fills the rest of the basic rate band at 10.75% (£3,999). The remaining £12,300 is taxed at 35.75% (£4,397.25). Dividend tax: £8,396.25. In 2025/26 the same income cost £7,406.25. To see what the company pays before the dividend, use the marginal relief calculator.
Dividend tax rates and allowance
| Band | 2025/26 | 2026/27 |
|---|---|---|
| Dividend allowance | £500 | £500 |
| Ordinary rate (basic rate band) | 8.75% | 10.75% |
| Upper rate (higher rate band) | 33.75% | 35.75% |
| Additional rate (over £125,140) | 39.35% | 39.35% |
| Personal Allowance | £12,570 | £12,570 |
Dividend tax in Scotland
Scottish income tax bands apply only to “non-savings” income such as wages, pensions and profits. Dividends are taxed at the same UK dividend rates wherever you live, and the UK basic rate band (£37,700) decides whether a dividend is taxed at the ordinary or upper rate. A Scottish taxpayer can therefore pay 42% on part of their salary while their dividends are still at 10.75%. For the salary side on its own, see the UK take-home pay calculator.
Not included: savings interest (it sits between your salary and your dividends and has its own allowances), pension contributions and Gift Aid that extend your basic rate band, and the High Income Child Benefit Charge. If those apply, treat the result as a starting point.
UK Dividend Tax Calculator FAQ
How much is dividend tax in 2026/27?
After the £500 dividend allowance, dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% above £125,140. This dividend tax calculator for the UK applies those rates to your own income.
What were the dividend tax rates for 2025/26?
8.75%, 33.75% and 39.35%, with the same £500 dividend allowance.
Do dividends push me into a higher tax band?
Yes. Dividends are added to your other income, and the slice above £50,270 of total income (with the full Personal Allowance) is taxed at the upper rate.
Is the dividend tax calculator different for Scotland?
Only for your salary. Dividends use UK rates and UK bands even for Scottish taxpayers.
Do I pay tax on dividends in an ISA or pension?
No. Dividends from shares held in an ISA or a pension are tax-free and do not use your allowance — leave them out.
How do I pay dividend tax?
GOV.UK says to report dividends above your allowances to HMRC, usually through a Self Assessment tax return; the tax is then due by 31 January after the tax year.