Dividend Tax Calculator

How to use it

Enter your salary and other taxable income for the year, then your expected dividends. That is all it needs.

Dividends are taxed after your other income, so the salary figure decides which band your dividends land in. Dividends held inside an ISA or a pension are tax free; leave them out.

Press the button and read the band-by-band working below it.

No figures leave your browser.

Estimate your dividend tax

Dividend Tax · 2026/27

What will your dividends cost you?

Estimate the income tax on your 2026/27 dividends. Nothing you type leaves your browser.

Salary and other taxable income (before tax)

Dividends for the year

Dividends are taxed after your other income. Leave out dividends held inside an ISA or a pension; they are tax free.

Your dividend tax · 2026/27

Not modelled: pension contributions or Gift Aid, savings interest, Scottish and Welsh salary bands, and foreign withholding tax. Estimates only, on 2026/27 rates and thresholds. Sources: GOV.UK: Tax on dividends and GOV.UK: Income Tax rates. This is an estimate for general information, not advice.

The 2026/27 dividend rates

For 2026/27 the dividend ordinary rate is 10.75%, the dividend upper rate 35.75% and the additional rate 39.35%, applying in the basic, higher and additional rate bands respectively after the £500 dividend allowance (GOV.UK: Tax on dividends; the two lower rates were set by Budget 2025 with effect from 6 April 2026). For director-shareholders these rates are central to how the classic low-salary-plus-dividends mix performs, which is why the calculator shows the full band-by-band working rather than a single number.

What the calculator assumes, and what it leaves out

It stacks your dividends on top of your other income, applies the personal allowance (£12,570 for 2026/27, tapered by £1 for every £2 of income over £100,000) and the £500 dividend allowance, and taxes each slice at the 2026/27 dividend rates. It does not model:

Pension contributions or Gift Aid, which change your adjusted net income.

Savings interest and the personal savings allowance.

Scottish and Welsh income tax bands on salary (dividend rates are UK-wide, but band positions can differ).

Foreign dividends with overseas withholding tax. If any of those apply to you, the real answer can be different.

Figures are correct as at August 2026; the authority is GOV.UK: Tax on dividends.

Frequently asked questions

How are dividends taxed in 2026/27?

Dividends sit on top of your other income and are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band (2026/27), after a £500 dividend allowance.

What is the £500 dividend allowance?

The first £500 of dividends is taxed at 0% for 2026/27. It still uses up band space, so it does not change which band your later dividends fall into. The calculator applies it automatically.

Why did my dividend tax go up from April 2026?

Budget 2025 raised the dividend ordinary rate from 8.75% to 10.75% and the dividend upper rate from 33.75% to 35.75% from 6 April 2026. The additional rate is unchanged at 39.35%.

Do dividends inside an ISA or pension count?

No. Dividends on shares held inside an ISA or a pension are tax free and should not be entered; only dividends you receive outside those wrappers are taxable.

Does the calculator handle the personal allowance taper?

Yes. The £12,570 personal allowance (2026/27) reduces by £1 for every £2 your adjusted net income is over £100,000, disappearing at £125,140. The calculator applies the taper to your combined salary and dividends; pension contributions and Gift Aid, which can restore it, are not modelled.