Enter your dividends and your salary or other income to see the dividend tax you'll pay in 2026/27 at the new rates, the effective rate, what's left after tax and how each slice is taxed, with savings interest and Scottish taxpayers covered and a comparison with 2025/26.
How to use the dividend tax calculator
- Choose the tax year and whether you live in Scotland.
- Enter your dividends for the year and your salary, self-employed profit, pensions and rent.
- Add savings interest if you have any, then read your dividend tax and the band-by-band table.
Worked example
A company director pays themselves a £12,570 salary, which uses the Personal Allowance, and takes £50,000 in dividends in 2026/27. The first £500 is tax-free, the next £37,200 fills the basic rate band at 10.75% (£3,999) and the last £12,300 is taxed at 35.75% (£4,397.25): £8,396.25 of dividend tax, 16.79% of the dividends. At 2025/26 rates the same dividends cost £7,406.25, so the rise adds £990.
Dividend tax rates
- 2026/27: 10.75% basic, 35.75% higher, 39.35% additional; £500 allowance
- 2025/26: 8.75% basic, 33.75% higher, 39.35% additional; £500 allowance
- Personal Allowance £12,570, reduced by £1 for every £2 of income over £100,000
Sources: HM Revenue & Customs and the GOV.UK policy paper on tax rates for property, savings and dividend income (Budget 2025). Everything runs in your browser.
Frequently asked questions
What are the dividend tax rates for 2026/27?
10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, from 6 April 2026. The basic and higher rates went up by 2 percentage points from 8.75% and 33.75%; the additional rate didn't change. The dividend allowance stays at £500.
How is dividend tax worked out?
Dividends are treated as the top slice of your income: salary, pensions and rent come first, then savings interest, then dividends. Any Personal Allowance left over covers dividends tax-free, the first £500 is taxed at 0%, and the rest is taxed at the rate of the band it falls in: basic up to £50,270 of total income, higher up to £125,140, additional above.
Do I pay tax on dividends under £500?
No. Dividends within the £500 allowance aren't taxed, but they still count as income, so they use up part of your basic rate band and can push other dividends into the higher rate.
Do Scottish taxpayers pay different dividend tax?
No. Scotland sets its own rates for salary, pensions and rent, but dividends and savings interest are taxed at the UK rates and bands. The calculator applies Scottish rates to the other income and UK rates to the dividends.
How do I pay tax on dividends?
Between £500 and £10,000 of dividends, you can ask HMRC to collect it through your tax code or report it on a Self Assessment return. Over £10,000 you must file Self Assessment, and the tax is due by 31 January after the end of the tax year.
Are dividends in an ISA or pension taxed?
No. Dividends inside a stocks and shares ISA or a pension aren't taxed and don't count towards the allowance or your tax bands, so only enter dividends from shares you hold outside them.
