Dividend Tax Calculator 2026/27
The first £500 of dividends each year sits in a 0% slice that still uses band room. Above that, 2026/27 rates are 10.75% basic, 35.75% higher and 39.35% additional. We share your Personal Allowance to minimise combined tax on other income and dividends. Enter figures below.
Source: HMRC tax on dividends. Supports dividend allowance and the ordinary, upper and additional dividend rates. Source checked on .
Calculator
Non-savings salary or profits only. This calculator uses England, Wales and Northern Ireland ordinary income tax bands. Scottish income tax bands are not applied.
Scottish residents: enter other income for illustration only. Ordinary income tax here is not calculated on Scottish bands.
Total dividends received from UK or overseas companies.
What this calculation assumes
Calculators model a full tax or contract year in one step. Money is carried at full precision through the calculation and rounded once for display, to the penny for exact amounts and to the nearest pound where a figure is labelled an estimate.
- Pay-period rounding in real payroll can make the yearly total differ by a small amount
- Monthly figures are an annual result divided by twelve, not a payroll month
- A part-year start or leaver date is not modelled unless the page offers it
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How Dividend Tax Calculator 2026/27 Works
This calculator models annual non-savings salary or profits plus dividends. Ordinary income uses England, Wales and Northern Ireland tax bands. Dividends use the UK dividend rates. Scottish ordinary income tax bands are not applied.
Personal Allowance allocation
Your Personal Allowance can cover ordinary income, dividends, or a mix. The default result chooses the split that minimises combined income tax on both, not dividend tax alone. The dividend allowance is a separate 0% slice that still occupies space in the tax bands.
What this does not include
Results do not include National Insurance, corporation tax, savings interest, Gift Aid or pension adjustments, foreign tax credits, or a full Self Assessment liability.
Dividends for company directors and limited company owners
If you are a company director or run a limited company, dividends are often part of how you pay yourself, usually alongside a salary. The same dividend tax rates and the same £500 dividend allowance apply, but the most tax efficient mix of salary and dividends depends on your wider situation, including your Personal Allowance, National Insurance, and the corporation tax paid on company profits before dividends can be drawn. Dividends can only be paid from profit after corporation tax, so the best split is rarely all dividends or all salary. For a full breakdown of how to balance the two, see our guide to taking a salary versus dividends at /blog/salary-vs-dividend-uk/.
Frequently Asked Questions
The dividend allowance for 2026/27 is £500. This means the first £500 of dividends sits in a 0% slice, though that slice still uses income tax band room. The allowance was reduced from £1,000 in 2023/24 and from £5,000 in 2017/18.
For the 2026/27 tax year, dividend tax rates are 10.75% (basic rate), 35.75% (higher rate), and 39.35% (additional rate). The basic and higher rates each increased by 2 percentage points from April 2026. The £500 dividend allowance remains unchanged.
No. National Insurance is only charged on employment income and self-employed profits. Dividends are not subject to NI. This is why limited company directors often take a low salary (to the NI threshold) and top up with dividends, though this requires trading profitably enough to distribute dividends.
If your total dividend income exceeds the allowance and you're a basic rate taxpayer, HMRC will collect tax via an adjustment to your PAYE code. If you need to pay higher or additional rate tax on dividends, you must file a self assessment return. You always need to report dividends over £10,000.
A basic rate taxpayer receiving £30,000 in dividends (above the £500 allowance) will pay an additional £590 compared to 2025/26. A higher rate taxpayer receiving the same amount will pay the same additional £590. The increase is £20 per £1,000 of taxable dividends for both basic and higher rate taxpayers.
If you are a company director with retained profits, taking dividends before 6 April 2026 locks in the lower 2025/26 rates. From 6 April 2026, rates are 10.75% (basic), 35.75% (higher), and 39.35% (additional). Consult your accountant to balance timing against your company's cash flow needs.
Directors pay dividend tax at the same rates as everyone else, which for 2026/27 are 10.75% at the basic rate, 35.75% at the higher rate, and 39.35% at the additional rate, after the £500 dividend allowance. Dividends can only be paid from company profits after corporation tax, and many directors combine a modest salary with dividends to manage their overall tax and National Insurance. Our salary versus dividends guide explains the most efficient mix.
It depends on your total income, your Personal Allowance, National Insurance, and the corporation tax paid on company profits. Dividends carry no National Insurance and are taxed at lower headline rates than salary, but they come from profit after corporation tax, so the best balance varies from person to person. Our guide to salary versus dividends works through the trade-off in detail.
Related Guides
Salary vs Dividends 2026/27 for Directors
How company directors split salary and dividends, employer NI, and the Employment Allowance rules explained.
Read guideCorporation Tax Rates 2026/27: Everything You Need to Know
Small profits rate, main rate, and marginal relief explained for 2026/27.
Read guideWas this useful?
Sources and method
- HMRC tax on dividends (HM Revenue & Customs). Supports: Dividend allowance and the ordinary, upper and additional dividend rates. United Kingdom, 2026/27 tax year. Source checked on .
- HMRC Income Tax rates and allowances (HM Revenue & Customs). Supports: The ordinary income bands that position the dividend rates. England and Wales, 2026/27 tax year. Source checked on .
Method: Annual estimates and rounding.
Spotted a figure that looks wrong? Report a correction and we will check it against the source above.
Further reading
Background references used while writing this page. The sources behind the calculated figures are listed above.
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.