Dividend tax rates 2026/27
From 6 April 2026 the rates on dividends above the £500 allowance are 10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate). Dividends inside an ISA are tax-free.
How it is worked out
Your dividends are added on top of your other income. Any unused Personal Allowance (£12,570) covers dividends first. The next £500 is the dividend allowance, taxed at 0%, but it still uses up part of your tax band. Dividends falling in the basic band (taxable income up to £37,700) pay 10.75%, the higher band (up to £125,140) pays 35.75%, and above that 39.35%.
Scotland: Scottish rates apply to salary only. Dividends are taxed at the UK dividend rates and bands, so this calculator uses UK bands for the dividend part.
Worked example (GOV.UK)
£29,570 wages and £3,000 dividends: taxable income £20,000, all in the basic band. No tax on £500 (dividend allowance), and 10.75% on £2,500 = £268.75.
Frequently asked questions
What is the dividend allowance for 2026/27?
£500. Dividends above that are taxed at 10.75%, 35.75% or 39.35% depending on your band.
Did dividend tax go up in April 2026?
Yes. From 6 April 2026 the basic rate is 10.75% and the higher rate 35.75%. The additional rate is 39.35%.
Do I pay National Insurance on dividends?
No. National Insurance is not charged on dividends, which is one reason company directors often take a mix of salary and dividends.
Do I need to tell HMRC about dividends?
Yes, if your dividends are more than both your unused Personal Allowance and the £500 dividend allowance. How you report them depends on how much you received; see GOV.UK.
How to use the Dividend Tax Calculator
- Enter your figures (price, salary, profit or dates) in the calculator above.
- Pick the options that match you, such as your UK nation, buyer type or plan.
- Read the breakdown: the tool shows each band or step, not just the total.
- Check the worked example and table below to sanity-check the result.
- Confirm big decisions with GOV.UK, HMRC or a qualified adviser.
Why use this Dividend Tax Calculator
Official 2026/27 rates
Rates and thresholds taken from GOV.UK and devolved government sites.
Band-by-band breakdown
See exactly how each slice is worked out.
UK nations
Handles differences between England, Scotland, Wales and NI where they apply.
Private
Your numbers never leave your browser.
Works on mobile
Responsive layout for phones and tablets.
Instant
No forms to submit, no sign-up.
Dividend Tax Calculator: chart and reference data
2025/26 2026/27
Source: GOV.UK – Tax on dividends
| Other income (salary) | Dividends | Dividend tax |
|---|---|---|
| £12,570 | £5,000 | £483.75 |
| £12,570 | £20,000 | £2,096.25 |
| £29,570 | £3,000 | £268.75 |
| £40,000 | £10,000 | £1,021.25 |
| £60,000 | £10,000 | £3,396.25 |
Dividend Tax Calculator compared with the alternatives
| Option | Uses current rates | Shows breakdown | Cost |
|---|---|---|---|
| This calculator | 2026/27 GOV.UK rates | Yes, band by band | Free |
| GOV.UK official tools | Yes | Partly | Free |
| Accountant / adviser | Yes | Yes, personalised | Paid |
| Old spreadsheets | Often out of date | Depends | Free |
Who uses it in the UK
- Budgeting before a job offer, house purchase or new car
- Checking a payslip, SMP letter or redundancy offer
- Freelancers and small businesses planning tax bills
- Comparing options side by side before speaking to an adviser
More questions
Are dividends inside a pension or ISA taxed?
No. Dividends received inside an ISA or a registered pension are not subject to dividend tax.
Does the dividend allowance reduce my taxable income?
No. The £500 is taxed at 0%, but it still counts towards your income and can push other dividends into a higher band.
Which tax year do these figures use?
The 2026/27 rates and thresholds (6 April 2026 to 5 April 2027), as published on GOV.UK and checked in October 2026.
Is this calculator financial advice?
No. It gives an estimate based on official rates. Your own situation may differ, so check with GOV.UK, HMRC, your lender or a qualified adviser before deciding.
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Sources
Disclaimer: This calculator gives an estimate using official 2026/27 rates published on GOV.UK and devolved government sites (checked October 2026). It is not financial, tax or legal advice and may not cover every situation. Always check with the official source, HMRC, your lender or a qualified adviser before making decisions.