Dividend tax calculator 2026/27
United Kingdom · 2026/27 tax yearDividend tax rates rose by 2 percentage points from 6 April 2026. Enter your salary and dividends to see what you owe, and how it is worked out band by band.
Dividend tax rates 2026/27
| Tax band | 2025/26 | 2026/27 |
|---|---|---|
| Dividend allowance | £500 tax-free | £500 tax-free |
| Basic rate (ordinary rate) | 8.75% | 10.75% |
| Higher rate (upper rate) | 33.75% | 35.75% |
| Additional rate | 39.35% | 39.35% |
Dividends are added on top of your other income to decide which band they fall in. The £500 dividend allowance is tax-free, but it still uses up part of your tax band.
Example: £12,570 salary and £40,000 of dividends
The salary uses up the personal allowance. The first £500 of dividends is covered by the allowance. The next £37,200 falls in the basic band at 10.75% (£3,999). The remaining £2,300 is in the higher band at 35.75% (£822.25). Total dividend tax: £4,821.25.
Frequently asked questions
Do I need to tell HMRC about dividends?
If your dividends are within the £500 allowance, you do not need to report them. Up to £10,000 you can ask HMRC to change your tax code; above £10,000 you must complete a Self Assessment tax return.
Are dividends in an ISA taxed?
No. Dividends from shares held in an ISA or a pension are tax-free and do not use your dividend allowance.
An estimate for guidance only. It does not include savings interest or the starting rate for savings.
Last checked and updated: October 2026 (2026/27 tax year)