UK Dividend Tax Calculator 2026/27

Estimate the Income Tax due on dividends in the 2026/27 tax year after allowing for other non-savings income. The calculator uses the current £500 Dividend Allowance and the 10.75%, 35.75% and 39.35% dividend tax rates.

Dividend tax rates for 2026/27

From 6 April 2026, the dividend ordinary rate is 10.75% and the dividend upper rate is 35.75%. The dividend additional rate remains 39.35%. The Dividend Allowance remains £500.

The £500 Dividend Allowance is a 0% rate on that slice of dividend income. It does not remove the dividends from your total income when deciding which tax band they fall into. That distinction matters when dividends cross from the basic-rate band into the higher-rate band.

How this dividend tax calculator works

Income is normally stacked for Income Tax purposes. This simplified tool first uses any available Personal Allowance against the other non-savings income entered. It then places the full dividend income on top, identifies which dividend slices fall in the basic, higher and additional bands, and applies the £500 Dividend Allowance at 0% within those bands before charging the relevant dividend rates.

For 2026/27 the standard Personal Allowance is £12,570. It is reduced by £1 for every £2 of adjusted net income above £100,000 and can fall to zero. The calculator models that taper using the two income figures entered.

Example: £12,570 salary plus £37,700 dividends

With £12,570 of other income and £37,700 of dividends, the standard Personal Allowance covers the £12,570 other income. The dividends then occupy the £37,700 basic-rate band. The first £500 of dividends is covered by the Dividend Allowance and the remaining £37,200 is taxed at 10.75%, producing £3,999 dividend tax.

The supplied calculator’s benchmark for this particular example is therefore correct. fileciteturn22file0L206-L208 However, its general band-allocation method needed correction for cases where the Dividend Allowance itself straddles or occupies a tax band.

What happens above £100,000?

The Personal Allowance begins to taper when adjusted net income exceeds £100,000. It is reduced by £1 for every £2 above that level and can be completely lost. Dividend income can therefore contribute to the loss of Personal Allowance as well as generating dividend tax.

This calculator models the reduced Personal Allowance when determining the tax bands available to dividends. It reports dividend tax only; it does not attempt to show the extra tax that a reduced Personal Allowance may create on your salary or other income. For the broader effect of the taper, use our 60% Tax Trap Calculator.

Do Scottish taxpayers use different dividend rates?

Scottish Income Tax rates differ for some non-savings, non-dividend income, but dividend tax rates are UK-wide. However, Scottish non-dividend income can affect which UK dividend rate applies because it uses tax-band capacity. This simplified calculator therefore should not be used as a precise mixed-income calculation for a Scottish taxpayer.

Dividends inside an ISA

Dividends from shares held within an ISA are not subject to dividend tax and should not be entered as taxable dividend income in this calculator.

Limited-company directors: dividend tax is not the whole picture

A director deciding how to extract money from a company should not compare salary and dividends using dividend tax alone. Corporation Tax, distributable profits, employer National Insurance, employee National Insurance, pension contributions and personal circumstances can all matter. A dividend can only lawfully be paid from available company profits.

For that reason, this calculator does not describe £12,570 as a universally “optimal” director salary. The right salary/dividend mix depends on the company and individual circumstances.

What this calculator does not include

It does not model savings income, Scottish non-dividend tax bands, Gift Aid, pension contributions, Marriage Allowance, Blind Person’s Allowance, student loans, High Income Child Benefit Charge, foreign dividends, trusts, multiple special reliefs or the full tax position of a company director. It assumes the figures entered are gross taxable income for one tax year.

Official guidance

• GOV.UK: tax on dividends
• GOV.UK: Income Tax rates and allowances
• GOV.UK: 2026/27 dividend-rate changes

Related MoneySavvyUK calculators

• 60% Tax Trap Calculator — explore the Personal Allowance taper above £100,000.
• Self-Employed Tax Calculator — estimate Income Tax and Class 4 NI on sole-trader profits.
• Salary Sacrifice Pension Calculator — estimate take-home pay before and after pension salary sacrifice.

Figures checked: 5 October 2026. MoneySavvyUK provides general information and planning tools, not personalised tax, accounting, legal or investment advice.