Dividend Tax Calculator
Use this dividend tax calculator to work out the tax on dividends after your Personal Allowance and the dividend allowance, using the dividend tax rates 2026/27.
Checked 20 October 2026.
Salary, profits, pensions, rent and savings interest, but not dividends.
Dividend tax to pay
£1,021.25
This is an estimate for 2026/27. HMRC works out your final tax.
- Dividends within the Personal Allowance
- £0.00
- Dividend allowance used
- £500.00
- Taxable dividends
- £9,500.00
- Tax at 10.75%
- £1,021.25 on £9,500.00
- Effective rate on dividends
- 10.21%
- Dividends after tax
- £8,978.75
Show the working
- Total income = £40,000.00. Personal Allowance = £12,570 reduced by £1 for every £2 above £100,000 = £12,570.00.
- Other taxable income = £17,430.00. Personal Allowance left for dividends = £0.00, so £0.00 of dividends are not taxed.
- Dividends above the Personal Allowance = £10,000.00. The first £500.00 is covered by the £500 dividend allowance at 0% but still counts towards your band.
- The dividends sit on top of other income, from £17,430.00 to £27,430.00 of taxable income. Band limits: basic up to £37,700, higher up to £125,140, additional above.
- £9,500.00 × 10.75% = £1,021.25.
- £0.00 × 35.75% = £0.00.
- £0.00 × 39.35% = £0.00.
- Total dividend tax = £1,021.25.
Nothing you enter leaves your device. This is not tax advice. Check GOV.UK or ask HMRC or a qualified adviser before you file.
How is dividend tax worked out?
GOV.UK says dividends within your Personal Allowance are not taxed, you get a £500 dividend allowance, and your band is set by adding your dividends to your other income. The rest is taxed at 10.75% (basic), 35.75% (higher) or 39.35% (additional) in 2026/27.
GOV.UK's example of £29,570 wages and £3,000 dividends gives £268.75, which this calculator also gives. For interest on cash, see the savings calculator, and for tax-free saving see the ISA allowance calculator.
Dividend tax 2026/27 at a glance
| Dividend allowance | £500 |
|---|---|
| Basic rate taxpayers | 10.75% |
| Higher rate taxpayers | 35.75% |
| Additional rate taxpayers | 39.35% |
| Personal Allowance | £12,570 |
Tax on dividends by other income
| Other income | Dividends £2,000 | Dividends £10,000 | Dividends £30,000 | Dividends £50,000 |
|---|---|---|---|---|
| £12,570 | £161.25 | £1,021.25 | £3,171.25 | £8,396.25 |
| £25,000 | £161.25 | £1,021.25 | £4,353.75 | £11,503.75 |
| £50,000 | £536.25 | £3,396.25 | £10,546.25 | £17,696.25 |
| £100,000 | £536.25 | £3,396.25 | £10,721.21 | £18,591.21 |
2026/27 rules. Other income includes savings interest. The Personal Allowance is reduced above £100,000 of total income.
Did dividend tax rates go up in April 2026?
Yes. GOV.UK says the ordinary and upper dividend rates rose by 2 percentage points from April 2026, and the additional rate was unchanged. The 2026/27 rates are 10.75%, 35.75% and 39.35%.
Check GOV.UK for later years.
Why can my dividends be taxed at two different rates?
Your band is set by adding your dividends to your other income, so dividends that cross a band limit are taxed partly at one rate and partly at the next.
For example, other income of £45,000 and £10,000 of dividends is taxed partly at 10.75% and partly at 35.75%, for £2,203.75.
Common questions
What is the dividend allowance for 2026/27?
GOV.UK says the dividend allowance is £500 for the 2026 to 2027 tax year. Dividends inside it are taxed at 0% but still count towards your tax band.
How much tax do I pay on £10,000 of dividends?
It depends on your other income. In 2026/27 it is £1,021.25 if your other income is £25,000 and £3,396.25 if it is £50,000, after the Personal Allowance and the £500 dividend allowance.
Do dividends use up my Personal Allowance?
Only if your other income does not use it first. GOV.UK says you do not pay tax on dividend income that falls within your Personal Allowance. This calculator uses the allowance against your other income first, then against dividends.
Should I include savings interest in other income?
Yes. Savings interest counts towards your total income and your band, so include it in other income. This calculator does not work out savings tax and ignores the starting rate for savings.
Does this calculator work for Scotland?
Dividend rates are the same, but GOV.UK notes that Income Tax bands for other income are different in Scotland. This calculator uses the standard band limits, so check GOV.UK if you live there.
Sources
Checked 20 October 2026:
This is not tax advice. Check GOV.UK or ask HMRC or a qualified adviser before you file.
Related calculators
Capital Gains Tax Calculator
Estimate the Capital Gains Tax on a gain from property, shares or other assets in 2026/27.
Tax and savingsSavings Calculator
Work out how much a starting balance and monthly deposits could grow to, with an optional estimate of tax on the interest.
Tax and savingsISA allowance and cash ISA calculator
Check your ISA allowance for 2026/27, the April 2027 cash ISA limit and project cash ISA interest.
PensionsSalary sacrifice pension
Compares your pay with and without salary sacrifice into a pension.