Dividend Tax Calculator 2026/27

  • Use this calculator for: dividends from shares you hold in someone else's company — publicly listed stocks (held outside an ISA), funds / ETFs / REITs distributions, or a minority stake in a private company. It computes the personal-tax slice only.
  • Don't use this if you own your own Ltd — the Limited Company calculator models the full pipeline (Corporation Tax + Employer NI + your PAYE + dividend tax) and has a salary/dividend split optimiser.
  • ISA / pension dividends are tax-free — don't enter them here. Only General Investment Account (GIA) dividends are taxable.
  • Dividend allowance: £500 from 2024/25 (was £1,000 / £2,000 earlier). Taxed at 0% but uses up basic band space.
  • Above the allowance, dividends are taxed by the band the cumulative income falls into: 8.75% basic, 33.75% higher, 39.35% additional (2024/25 & 2025/26). For 2026/27: 10.75% / 35.75% / 39.35% (Autumn 2025 Budget).
  • Scotland's income-tax bands apply to your salary / other income, but dividend tax is not devolved — Scottish taxpayers still use the rUK bands for the dividend portion.
  • HMRC ordering: Personal Allowance is used against non-savings non-dividend income first, then dividends sit on top.
Dividend Tax Calculator

For dividends received from shares you don't run yourself — public stocks (outside an ISA), funds, ETFs, REITs, or a minority stake. Slots dividends into the right band on top of your salary / self-employment / rental income using HMRC's ordering rule.

Run your own Ltd? Use the Limited Company calculator instead — it adds Corporation Tax + Employer NI + salary/dividend split optimisation.

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How UK dividend tax works

Dividends are taxed after all other income, sitting on top of salary, self-employment profit or rental income in the tax bands. The first £500 each tax year is covered by the dividend allowance and is tax-free. Above that, the rate depends on which band the dividends fall into: 10.75% (basic rate), 35.75% (higher rate) or 39.35% (additional rate).

Enter your salary or other income alongside your dividend amount — the calculator stacks them correctly and shows how much of your dividend falls into each band. Scottish income tax bands apply to salary and self-employment income, but dividend tax is not devolved: all UK taxpayers use the same dividend rates regardless of where they live.

Useful for directors deciding how much to draw from a limited company, investors managing ISA versus general investment account allocations, or anyone checking whether a large dividend will push them into the higher-rate band.

Common dividend tax calculations

Jump straight to a common dividend amount — each link opens the calculator pre-filled.

£1,000 dividend tax £2,000 dividend tax £5,000 dividend tax £10,000 dividend tax £20,000 dividend tax £30,000 dividend tax £50,000 dividend tax £100,000 dividend tax

Dividend tax FAQs

Is dividend tax different in Scotland?

No. Scotland has its own income tax bands (SRIT) for salary and self-employment income, but dividend tax is not devolved — Scottish taxpayers pay the same dividend rates as the rest of the UK: 10.75% basic, 35.75% higher, 39.35% additional, after the £500 tax-free allowance.

How much UK dividend tax will I pay?

The first £500 of dividend income each tax year is tax-free. Above that, the rate depends on your total income: 10.75% while you're in the basic-rate band, 35.75% in the higher-rate band, and 39.35% in the additional-rate band. Dividends are taxed after salary, self-employment profit and other income, so the band they fall into depends on everything else you earn too.

Is it better to take a salary or dividends from my company?

For limited company directors, dividends are usually more tax-efficient than an equivalent salary because they avoid National Insurance — but the company still pays Corporation Tax on the profit first. Use the Limited Company calculator to compare a specific salary/dividend split for your numbers.