Tax on £10,000 of dividends (2026/27)
Dividend tax on £10,000 by other income
| Other income | 2026/27 | 2025/26 |
|---|---|---|
| No other income | £0.00 | £0.00 |
| £12,570 salary (typical director) | £1,021.25 | £831.25 |
| £30,000 salary | £1,021.25 | £831.25 |
| £50,270 salary | £3,396.25 | £3,206.25 |
| £100,000 salary | £3,396.25 | £3,206.25 |
Dividends are taxed on top of your other income. Unused Personal Allowance covers them first, the next £500 is tax-free, then 10.75% applies up to £50,270 of total income, 35.75% up to £125,140 and 39.35% above. Above £100,000 of total income, including dividends, the Personal Allowance shrinks by £1 for every £2. Income Tax on the salary itself is not included above.
What changed in April 2026
Finance Act 2026 raised the basic and higher dividend rates by 2 points each, from 8.75% to 10.75% and from 33.75% to 35.75%. The additional rate stays at 39.35%. For the director above that is £190.00 more tax on the same £10,000.
How and when you pay it
Up to £10,000 of dividends you can ask HMRC to collect the tax through your tax code if you do not already file a return. Above £10,000 you must file Self Assessment, and the tax for 2026/27 is due by 31 January 2028. See the whole picture for your company in the limited company tax calculator, or enter your own figures in the dividend tax calculator.
Other dividend amounts
Frequently asked questions
How much tax do I pay on £10,000 of dividends?
£1,021.25 with a £12,570 salary, £0.00 with no other income, and £3,396.25 if you also earn £50,270, all for 2026/27.
Do dividends in an ISA count?
No. Dividends inside a Stocks and Shares ISA or a pension are tax-free and are not part of these figures.
Is dividend tax different in Scotland?
No. Dividend rates and bands are the same across the UK. Scottish rates only change the tax on a salary.
Sources: Finance Act 2026 section 4, ITA 2007 sections 8, 13A and 16, gov.uk Tax on dividends. Updated 2026-11-04. General information, not tax advice.