UK Dividend Tax Calculator

The headline is tax on dividends only, not your total Income Tax bill. Net dividends are gross dividends less that estimated dividend tax. The effective rate divides dividend tax by gross dividends.

Each band shows dividends allocated to it, any amount charged at 0% under the Dividend Allowance, the amount taxed at the band rate and the resulting tax. Displayed money is rounded to pennies; arithmetic retains full precision.

Enter annual gross salary and other non-dividend taxable income, then dividends received outside tax-free accounts. Choose the tax year matching when the dividends arose. Use profit rather than business turnover for self-employment income.

The calculator first reduces the Personal Allowance for total income above the taper threshold. It applies that allowance to other income first and any remainder to dividends. Other taxable income occupies the lower UK bands before dividends are allocated. The Dividend Allowance is then charged at 0% in its actual band position, without extending any band.

The versioned dividend rate record and shared Income Tax allowances and band thresholds are used together for the selected year. The 2026/27 tax year runs from 6 April 2026 to 5 April 2027; the comparison year runs from 6 April 2025 to 5 April 2026. Figures were checked on 20 September 2026 against the official sources below.

Calculations run locally in your browser without login or sending your income figures to a server. Worked examples are generated by the same engine as the calculator, and tests cover band boundaries, the allowance taper and both tax years.

The ordinary, upper and additional dividend rates are 10.75%, 35.75%, 39.35%, respectively. These apply to dividends above available allowances. For comparison, the 2025/26 rates are 8.75%, 33.75%, 39.35%. The rate change does not change how dividends are stacked on other income.

The Dividend Allowance charges the first £500 of dividends remaining after Personal Allowance at 0%. It is not an extra deduction from total income and does not extend the basic or higher band.

For example, if only £270 of basic-band capacity remains, the first £270 of the Dividend Allowance occupies that band and the remainder occupies the higher band. It cannot all be treated as a deduction before deciding which band applies.

Dividends are the top slice of income. A higher salary can use up basic-band capacity before any dividends are considered, even if the dividend amount itself is unchanged.

Scottish rates apply to non-savings, non-dividend income such as salary, pensions and trading profits. Dividend rates and their UK band limits are the same across the UK. This calculator does not calculate Scottish tax on your other income.

The standard Personal Allowance is £12,570. It falls by £1 for every £2 of adjusted net income above £100,000 and is nil at £125,140.

Dividends count towards adjusted net income even where the Dividend Allowance makes some of them taxable at 0%. Loss of Personal Allowance can also increase tax on other income; that extra non-dividend tax is outside this dividend-only headline.

Dividends are distributions to shareholders, not a deduction from company profits like salary. Corporation Tax is separate from personal dividend tax. Company law and available distributable profits determine whether a dividend can be paid.

Dividends do not normally attract National Insurance. That does not make a salary-and-dividend strategy automatically better: company tax, pension entitlement and personal circumstances also matter.

Your return may include savings, foreign income, pension contributions, Gift Aid, reliefs, tax already paid and other adjustments. These can change allowances, band allocation or the final balance due. This calculator deliberately estimates only dividend tax under its stated assumptions.

Payments on account are advance payments towards another tax year, not extra dividend tax for this year. HMRC return rounding and allowance allocation can also differ. Consult the GOV.UK reporting guidance linked below or a qualified adviser for your circumstances.