Dividend Tax Calculator UK 2026/27
Dividend tax went up on 6 April 2026. Enter your dividends and your other income to see exactly what you owe and which rate each pound falls into.
| Dividend allowance at 0% | £500 |
|---|---|
| Basic rate 10.75% on £29,500 | £3,171.25 |
| Dividend tax | £3,171.25 |
| Income Tax on your other income | £0.00 |
- The rates rose by 2 points on 6 April 2026: basic 10.75% (was 8.75%) and higher 35.75% (was 33.75%). The additional rate stays 39.35%.
- Dividends inside an ISA or pension are tax-free and do not count here.
- Up to £10,000 of dividends, if you do not already file a tax return, you can ask HMRC to collect the tax through your tax code. Above £10,000 you must file a Self Assessment return.
Dividend tax rates 2026/27
| Band | 2025/26 | 2026/27 |
|---|---|---|
| Dividend allowance | £500 at 0% | £500 at 0% |
| Basic rate (total income to £50,270) | 8.75% | 10.75% |
| Higher rate (to £125,140) | 33.75% | 35.75% |
| Additional rate | 39.35% | 39.35% |
The rise was set by Finance Act 2026. A director with a £12,570 salary and £30,000 of dividends now pays £3,171.25, up from £2,581.25 last year.
How dividends are stacked
Dividends are always taxed last, on top of your salary, pension and other income. Any Personal Allowance your other income does not use covers dividends first. The next £500 is taxed at 0%, but it still uses up band space. Everything after that is taxed at the rate of the band it lands in. That is why the same dividend can cost 10.75% for one person and 35.75% for another.
Scotland
Dividend rates and bands are the same across the UK. If you live in Scotland, the Scottish rates apply only to your salary or pension, not to dividends. The calculator handles both.
Frequently asked questions
How much dividend can I take tax-free in 2026/27?
With no other income, £13,070: the £12,570 Personal Allowance plus the £500 dividend allowance. With a salary of £12,570 only the £500 allowance is left.
Do I have to tell HMRC about dividends?
Not if they are within the £500 allowance. Up to £10,000 you can ask HMRC to change your tax code if you do not file a return. Above £10,000 you must file Self Assessment, registering by 5 October after the tax year.
Are ISA dividends taxed?
No. Dividends inside a Stocks and Shares ISA or a pension are tax-free and do not use your allowance.
Tax on common dividend amounts
Running your own company? See salary and dividends together in the limited company tax calculator.
Sources: Finance Act 2026 section 4, ITA 2007 sections 8, 13A and 16, gov.uk Tax on dividends. General information, not tax advice.