ratesheet

Dividend tax calculator

See how much tax you'll pay on the dividends you take from your company this year, and how much of each band you use.

Your numbers

Salary, pension and rental income: anything that isn't a dividend.

You'll owe £4,821 in dividend tax.

  • Dividend tax due£4,821Pay by 31 January after the tax year
  • Dividends kept£35,179£2,932 a month
  • Effective rate12.1%On all your dividends
Your dividends
  • Kept 88%
  • Dividend tax 12%
Dividends by band
Covered by personal allowance: £0 at 0%£0
Dividend allowance: £500 at 0%£0
Basic rate: £37,200 at 10.75%£3,999
Higher rate: £2,300 at 35.75%£822
Additional rate: £0 at 39.35%£0
Dividend tax£4,821
For reference
Personal allowance after taper£12,570
Income tax on your other income£0

2026/27 rates for England, Wales and Northern Ireland. Rates last checked 8 Nov 2026 against GOV.UK: Tax on dividends, Income Tax rates and allowances.

How it’s worked out

Dividends are taxed last. Your salary and other income use up your £12,570 personal allowance and the tax bands first. Any personal allowance left over then covers dividends at 0%, and the first £500 of dividends after that falls in the dividend allowance, also at 0%.

The dividend allowance isn't extra band space: those £500 still count towards the basic-rate band, which is why the calculator starts taxed dividends £500 further up. Dividends in the basic band are taxed at 10.75%, in the higher band at 35.75% and above £125,140 at 39.35%.

If your total income passes £100,000 you lose £1 of personal allowance for every £2 over, which pushes more dividends into the higher bands. The calculator includes this taper.

You pay dividend tax through Self Assessment. The balance is due by 31 January after the end of the tax year, and if your bill is over £1,000 you'll usually make payments on account towards next year too.

Questions

What is the dividend allowance for 2026/27?

£500. The first £500 of dividends above your personal allowance is taxed at 0%, but it still uses up band space.

What are the dividend tax rates for 2026/27?

10.75% in the basic band, 35.75% in the higher band and 39.35% in the additional band.

Does my salary affect my dividend tax?

Yes. Salary is taxed first, so the more salary you take, the less band space is left for dividends at the lower rate.

These figures are estimates for guidance only and aren’t financial or tax advice. Speak to an accountant before making decisions.