Business & tax · UK
Dividend Tax Calculator
Work out the tax on your dividends for the 2026/27 tax year. Add your dividend income and your other income to see how the £500 allowance and the 10.75%, 35.75% and 39.35% rates apply.
Rates for the 2026/27 tax year. This works out the tax on your dividends only, not on your salary. An estimate to help you plan, not tax advice. Confirm with HMRC or an accountant.
How dividend tax works in 2026/27
Dividends are treated as the top slice of your income. Your other income, such as salary or a pension, is counted first and uses your personal allowance and the lower tax bands. Your dividends then stack on top, so the rate you pay depends on which band they land in once everything is added up.
The dividend rates above the allowance for 2026/27 are below. The basic and higher rates both rose by 2 percentage points from 6 April 2026:
- 10.75% on dividends in the basic-rate band.
- 35.75% on dividends in the higher-rate band.
- 39.35% on dividends in the additional-rate band.
The dividend allowance
Everyone gets a £500 dividend allowance for 2026/27. The first £500 of dividends is taxed at 0%, whatever band you are in. It still counts towards your total income though, so it can nudge the rest of your dividends into a higher band. On top of the allowance, any part of your personal allowance that your other income does not use up will also cover dividends tax-free.
A note for higher earners and Scottish taxpayers
Once your total income passes £100,000, your personal allowance is cut by £1 for every £2 above that, which the calculator accounts for. And although Scotland sets its own rates on earnings, dividends are taxed at the same UK rates and bands wherever you live, so the figures here apply across the UK.
Common questions
How much can I earn in dividends before paying tax?
The dividend allowance for 2026/27 is £500. The first £500 of dividends is taxed at 0%. On top of that, any part of your personal allowance not used by other income covers dividends too, so if your total income is low you may pay no dividend tax at all.
What are the dividend tax rates for 2026/27?
Above the £500 allowance, 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 basic and higher rates rose by 2 percentage points from 6 April 2026. Which rate applies depends on where the dividends sit once stacked on top of your other income.
How are dividends taxed on top of a salary?
Dividends are treated as the top slice of your income. Your other income, such as salary, is counted first and uses your personal allowance and the lower tax bands. The dividends then stack on top, so they are taxed at the rate for the band they fall into.
Do I pay National Insurance on dividends?
No. Dividends are not subject to National Insurance. That is one reason company directors often take a small salary plus dividends. This calculator works out the dividend tax only, not the tax or National Insurance on your salary.
Are dividend tax rates different in Scotland?
No. Scotland sets its own rates for earnings, but dividends are taxed at the same UK rates and use the UK bands wherever you live. So a Scottish taxpayer uses the same 10.75%, 35.75% and 39.35% rates here.
How do I pay the tax on my dividends?
If your dividends are above £10,000 you usually need to file a Self Assessment tax return. Below that, you can ask HMRC to change your tax code or report it through Self Assessment. Always check your own position with HMRC.
About this calculator
Written by the calcd team. We checked the rates, the £500 allowance and the way dividends stack on top of other income against gov.uk (HMRC). The result is an estimate of the tax on your dividends to help you plan, not tax advice. For anything that affects a tax return, confirm it with HMRC or an accountant. Last updated June 2026.