Dividend tax calculator

Enter your salary or other income and your dividends to see the tax due on the dividends in the 2026/27 tax year. The calculator shows which band each part of your dividends falls in.

Tax on your dividends

£268.75

£2,731.25 after tax

Your details

Salary and other income a year

Dividends a year

Where you pay income tax England, Wales or Northern Ireland Scotland

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Dividend tax by band

Band	Amount	Tax
Dividend allowance	£500.00	£0.00
Basic rate (10.75%)	£2,500.00	£268.75
Higher rate (35.75%)	£0.00	£0.00
Additional rate (39.35%)	£0.00	£0.00
Tax on your dividends		£268.75
Effective rate on dividends		8.96%

How this was worked out

1. Total income for the personal allowance taper: £29,570.00 + £3,000.00.
2. Personal allowance after taper: £12,570.00. The allowance is used against other income first.
3. Taxable other income before dividends: £17,000.00.
4. Dividends left after any unused personal allowance: £3,000.00.
5. Dividend tax: £268.75. Effective rate on all dividends: 8.96%.

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What the calculator assumes

• The 2026/27 tax year, and the standard personal allowance of £12,570.
• Your other income is pay, pension or profit from self-employment. It does not include savings interest.
• The dividends are from UK companies, and none of them are held in an ISA or a pension.

How dividend tax works

Dividends are taxed after the rest of your income. Your salary and other income use up your personal allowance and your tax bands first, and your dividends sit on top. So the same dividend can be taxed at a different rate for two people, depending on what else they earn.

The first £500 of dividends is covered by the dividend allowance and is taxed at 0%. It still takes up space in your tax band, so it can push the rest of your dividends into a higher band.

Above the allowance, dividends in the basic rate band are taxed at 10.75%. In the higher rate band the rate is 35.75%, and in the additional rate band it is 39.35%.

If your total income is over £100,000, your personal allowance goes down by half of the amount above that figure. Dividends count towards that total, so a large dividend can reduce your allowance. The calculator applies this.

If you live in Scotland

Scottish income tax rates apply only to earnings, pensions and rental profit. Dividends are taxed with the UK bands and rates, the same as in the rest of the UK. Your salary is still taxed at Scottish rates. Choose Scotland in the calculator and it uses the right rules for each part.

Paying the tax

No tax is taken from a dividend when it is paid. If your dividends are more than the allowance but under a limit set by HMRC, you can ask HMRC to collect the tax through your tax code. Above that limit, or if you already file one, you pay through a Self Assessment tax return.

What it leaves out

• Savings interest and the personal savings allowance.
• Dividends in an ISA or a pension, which are not taxed.
• National Insurance. Dividends do not have National Insurance on them, but a salary does.
• The tax your company pays on its profits before it pays a dividend. The corporation tax calculator covers that.

To see what a salary leaves after tax and National Insurance, use the take-home pay calculator. The income tax rates page shows every band for 2026/27, and the IR35 calculator compares contract work inside and outside the rules.

Official guidance

• Tax on dividends on GOV.UK
• Income Tax rates and Personal Allowances on GOV.UK

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