Dividend tax calculator for the UK
Enter your salary or pension, savings interest and dividends. The calculator stacks them in HMRC order, applies the £500 Dividend Allowance, and shows every dividend band at the 10.75%, 35.75% and 39.35% rates for 2026/27.
The result is the Income Tax caused by your dividends. It includes extra tax on other income where the dividends push adjusted net income above £100,000 and reduce your Personal Allowance.
Dividend tax rates for 2026/27
For 2026/27, dividends above the £500 allowance 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 two percentage points on 6 April 2026. The additional rate and the £500 allowance did not change. The allowance is a 0% tax rate, so dividends covered by it still use room in a tax band rather than disappearing from the stack.
| Band | 2025/26 | 2026/27 |
|---|---|---|
| Basic | 8.75% | 10.75% |
| Higher | 33.75% | 35.75% |
| Additional | 39.35% | 39.35% |
Official rates and example: gov.uk tax on dividends. The legislated rate change is explained in the HMRC technical note.
Worked examples
These examples assume England, Wales or Northern Ireland, no savings interest and no reliefs. Salary and other non-savings income fill the bands first, savings comes next, and dividends sit on top.
| Other income | Dividends | Direct dividend tax | PA-taper effect | Total caused |
|---|---|---|---|---|
| £29,570 | £3,000 | £269 | £0 | £269 |
| £40,000 | £5,000 | £484 | £0 | £484 |
| £100,000 | £10,000 | £3,396 | £2,000 | £5,396 |
Why dividends can cost more than the headline rate
Dividend income counts towards adjusted net income. Once total income passes £100,000, the Personal Allowance falls by £1 for each £2 above the line and reaches zero at £125,140. A dividend can therefore create a direct dividend charge and expose more salary, pension or savings income to tax. This calculator adds both effects instead of showing a deceptively low direct charge.
For a Scottish taxpayer, wages, pension, property profit and other non-savings income use the six Scottish bands. Savings and dividends use the same UK-wide rates as everywhere else. Selecting Scotland recomputes the non-savings tax band by band before placing savings and dividends on top.
Dividends in an ISA are not included because they are sheltered from dividend tax. Pension contributions, Gift Aid, Marriage Allowance, Blind Person's Allowance and other reliefs can change the final Self Assessment bill and are outside this focused estimate.
Common dividend tax questions
Does the £500 Dividend Allowance reduce taxable income?
No. It gives the first £500 of dividend income a 0% rate, but that income still occupies space in the basic, higher or additional-rate band. The calculator shows it inside the band working.
How do I report dividend income?
Below the allowance there is no dividend tax to pay. For dividends above it, the reporting route depends on the amount and whether you already file Self Assessment. Check the current steps on gov.uk.
Do dividends in an ISA count?
No. Leave ISA dividends out of this calculator. The inputs are for dividend income and savings interest outside tax shelters.