UK Dividend Tax Calculator

Tax on dividend income for 2026-27. £500 dividend allowance, the 8.75% / 33.75% / 39.35% band rates, and how dividends stack on top of salary in your tax bands.

Your income

Salary (gross)

Including any director's salary you pay yourself before dividends.

Dividend income

Total UK dividends received in the tax year (outside ISAs and SIPPs).

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Dividend tax due

£2,581

Effective rate on dividends: 8.6%

Breakdown by band

Personal allowance applied to dividends	£0
£500 dividend allowance (0%)	£500
At 8.75% (basic rate)	£29,500
Net dividends	£27,419

How UK dividend tax works

£500 dividend allowance: first £500 of dividends taxed at 0%, but the £500 still counts toward your band thresholds.
Stack order: dividends sit on top of salary in the band stack, so a £40k salary with £20k dividends has the dividends straddling the basic and higher rate bands.
Personal allowance taper: above £100k total income, the £12,570 personal allowance reduces by £1 for every £2 of income.
ISA wrapper: dividends inside an ISA or SIPP are tax-free and not reported. This calculator covers unwrapped dividends only.