Dividend tax calculator · 2026/27
How much tax will I pay on my dividends?
Dividends sit on top of your other income, so the tax depends on what else you earn. Put in your salary (or other income) and the dividends you'll take this year, and see exactly what's due after the £500 allowance — at the higher 2026/27 rates. It runs entirely in your browser.
Your year
Enter your non-dividend income first — that's what decides which tax band your dividends fall into — then the dividends you expect to receive. Nothing is sent anywhere.
How dividends are taxed for 2026/27
Dividends are treated as the top slice of your income. Your other income uses up your £12,570 personal allowance and fills the tax bands first; the dividends then stack on top and are taxed at the dividend rate for whichever band they land in. Everyone also gets a £500 dividend allowance taxed at 0% — but it still counts towards using up a band.
| Your Income Tax band | Dividend rate 2026/27 |
|---|---|
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
The basic and higher dividend rates rose by 2 percentage points for 2026/27 (from 8.75% and 33.75%), so drawing profit as dividends now costs more than it used to. Dividends inside a Stocks & Shares ISA stay tax-free and don't count here.
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Common questions
What are the dividend tax rates for 2026/27?
After the £500 dividend allowance, dividends are taxed at 10.75% if they fall in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band. The basic and higher rates went up by 2 percentage points from 2025/26 (they were 8.75% and 33.75%). Which rate applies depends on your other income, because dividends are taxed as the top slice.
How much can I take in dividends tax-free?
Two things shelter dividends. First, any part of your £12,570 personal allowance that your other income hasn't used covers dividends at 0%. Then everyone gets a £500 dividend allowance on top, also at 0%. So someone with no other income could take £12,570 + £500 = £13,070 of dividends before any tax is due; someone already using their full personal allowance on a salary gets just the £500.
Do I pay National Insurance on dividends?
No. Dividends are not earnings, so there's no National Insurance on them — that's a big part of why company directors take a small salary plus dividends. You do pay employee and employer National Insurance on the salary, which this calculator leaves out; it works out the dividend tax only.
Do I need to tell HMRC about my dividends?
If your dividends are within the £500 allowance, you don't need to do anything. Above that, dividend income up to £10,000 can be reported through a Self Assessment return or by asking HMRC to change your tax code. Over £10,000 in dividends you must file a Self Assessment tax return — the calculator flags this for you.
Does this include Scotland?
Dividend tax rates and the £500 allowance are the same across the whole UK, so the dividend figure here is right for Scotland too. What differs is the tax on your other income — Scottish taxpayers have different Income Tax bands on salary and self-employment — which can change which band your dividends tip into.
Dividends are only part of the picture
If you take dividends you almost certainly file a Self Assessment return — and that return also has to cover your salary or trading profit, payments on account, and the tax you set aside each month. Our spreadsheet toolkit pulls the whole thing together in Excel or Google Sheets you own.
- Self Assessment Tax Estimator 2026/27 — your full bill in one place: income tax, Class 4 NI, payments on account, month-by-month set-aside.
- Freelance Day-Rate & Profit Calculator — work back from the take-home you want to the rate you need to charge.
- Rental Property ROI & Yield Calculator — for landlords weighing personal versus company ownership.
- Invoice Tracker & Log — auto paid/outstanding/overdue, with a chase list.
Excel and Google Sheets. Working formulas, not just formatting. Built and checked by us, with AI assistance, and every calculation verified.
Get the Tax Estimator — £9 →£9 on its own, or all four tools for £19, with a 14-day money-back guarantee.