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Dividend Tax Calculator

2026/27 rates — including April's increase to 10.75%/35.75%. Dividends stack on top of your other income.

  • 2026/27 tax year
  • Instant results
  • Private: runs in your browser
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Dividends are taxed last, stacked on top of your other income — this determines which band each pound of dividend falls into.
Dividend tax owed
£0
net dividends received: £0
Covered by Personal Allowance£0
Covered by dividend allowance (£500)£0
Taxed at basic rate (10.75%)£0
Taxed at higher rate (35.75%)£0
Taxed at additional rate (39.35%)£0
Total dividend tax£0

How is UK dividend tax calculated?

Dividends are taxed separately from salary, but not in isolation — they're treated as the top slice of your income, stacked on top of your salary, pension or other earnings. Any unused Personal Allowance covers dividends first, then the £500 dividend allowance taxes the next slice at 0%, and everything above that is taxed at 10.75%, 35.75% or 39.35% depending on which Income Tax band it falls into once stacked. From 6 April 2026, the basic and higher dividend rates each rose by 2 percentage points — this calculator uses the current post-April figures.

Frequently asked questions

What is the dividend allowance for 2026/27?

£500 — the first £500 of dividend income each tax year is tax-free, regardless of your other income. It's been cut sharply in recent years, down from £2,000 as recently as 2022/23.

Did dividend tax rates change in 2026?

Yes — from 6 April 2026 the basic rate rose from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%, confirmed at the Autumn 2025 Budget. The additional rate held at 39.35%.

Do dividends use up my Personal Allowance?

Only if you have unused Personal Allowance left after your salary or other non-dividend income — dividends are taxed last, stacked on top of everything else, so they only benefit from whatever allowance your other income hasn't already used.

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