UK Dividend Tax Calculator
Work out the tax on dividends with the £500 allowance and the 2026-27 dividend rates.
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How to do it
- 1Fill in the boxes
Type your numbers or pick the options you need.
- 2See the result
The answer updates right away as you change a value.
- 3Use it
Copy the result or note it down. Nothing is sent anywhere.
About this tool
Enter your salary and the dividends you receive. The calculator uses your personal allowance, the £500 dividend allowance and the dividend tax bands to show the income tax, the dividend tax and what you keep. Rates and thresholds are for the 2026-27 tax year and can change. A guide only, check gov.uk for the official figures.
The rates
From April 2026 the ordinary dividend rate is 10.75 percent, the upper rate 35.75 percent and the additional rate 39.35 percent. The first £500 of dividends is taxed at 0 percent, though it still counts towards your bands. Dividends are taxed after your other income.
Example
A £40,000 salary and £10,000 of dividends leaves most of the dividends in the basic band, so the bill is mainly 10.75 percent of the part above the allowance.
Tips
Dividends held in an ISA are tax free. Company directors can combine a low salary with dividends, but corporation tax is paid first, so the real saving is smaller than it first looks.
Frequently asked questions
What is the dividend allowance?
£500 a year. Dividends within it are not taxed, but they use up part of your tax band.
Are dividends taxed after my salary?
Yes. Dividends are treated as the top slice of your income, so salary uses the personal allowance and bands first.
Do I need to file a return?
If you have more than £10,000 in dividends, or owe tax that cannot go through your tax code, you usually need Self Assessment.
Is the corporation tax included?
No. A company pays corporation tax before it can pay dividends, and this tool covers only your personal tax.