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Dividend tax calculator

Estimate Income Tax on dividends for 2026 to 2027 after the Personal Allowance and the £500 dividend allowance. Uses England, Wales and Northern Ireland bands; enter other income so the calculator can place dividends in the right band.

How dividends are taxed in 2026 to 2027

You do not pay tax on dividends that fall within your Personal Allowance. You also get a £500 dividend allowance each tax year. Above that, dividends are taxed at 10.75% (basic rate), 35.75% (higher rate) or 39.35% (additional rate), depending on your total income band (GOV.UK).

Worked example (GOV.UK)

GOV.UK's example: £29,570 wages and £3,000 dividends. After the £12,570 Personal Allowance, taxable income is £20,000 in the basic band. You pay no tax on £500 of dividends (the allowance) and 10.75% on the remaining £2,500 (GOV.UK). Try those figures above: the dividend tax should be £268.75.

Bands used here

Personal Allowance £12,570 (tapers above £100,000). Basic rate band £12,571 to £50,270 (so £37,700 of taxable income at basic rate). Higher rate to £125,140, then additional rate (GOV.UK). Scotland has different Income Tax bands, so this calculator is not right for Scottish taxpayers.

Compare take-home as a company director with the sole trader vs limited company calculator, or company profits with the Corporation Tax calculator.

Rates from GOV.UK for 2026 to 2027, checked 16 October 2026. An estimate, not tax advice.

Questions

What is the dividend allowance in 2026 to 2027?

£500 a year. You only pay tax on dividends above that (and above any unused Personal Allowance).

What are the dividend tax rates?

10.75% basic, 35.75% higher and 39.35% additional rate, for 2026 to 2027.

Do ISA dividends count?

No. You do not pay tax on dividends from shares in an ISA.

Does this include Income Tax on my wages?

No. It only estimates tax on the dividends. Other income is used to place dividends in the right band.