Dividend Tax Calculator
Calculate tax on dividend income for 2026/27 tax year
Last updated: August 2026 · 2026/27 tax rates
Your Income
From shares, funds, or company
Salary, pensions, rental, etc.
Different income tax bands
2026/27 Rates
Total Dividend Tax
£1,021
On £10,000 dividends
Effective Rate
10.2%
Tax Calculation Breakdown
Tax by Band
Key Information
Marginal Rate
10.75%
Tax on next £1 of dividends
Personal Allowance
£12,570
Full allowance
Self Assessment Required
You must complete a Self Assessment tax return as your dividend tax exceeds £1,000. Deadline: 31 January following the tax year.
Understanding Dividend Tax
Definition
Dividends are payments made by companies to shareholders from their profits. They're a way of distributing profits to investors who own shares in the company.
Sources of Dividends
- • Shares in UK or foreign companies
- • Investment funds/unit trusts
- • Open-ended investment companies (OEICs)
- • Your own limited company
Tax-Free Dividends
- • Dividends in ISAs
- • Dividends in pensions
- • First £500 (dividend allowance)
- • Amount within Personal Allowance
Tax Calculation Order
- Your other income (salary, pension, etc.) is taxed first
- Any unused Personal Allowance (£12,570) applies to dividends
- Dividend Allowance (£500) is deducted from remaining dividends
- Remaining dividends are taxed at dividend rates based on your income band
Basic Rate
10.75%
Total income £12,570 - £50,270
Higher Rate
35.75%
Total income £50,270 - £125,140
Additional
39.35%
Total income over £125,140
Tax year 2026/27 (6 April 2026 - 5 April 2027) | Dividend Allowance: £500 | Rates: 10.75%, 35.75%, 39.35%
Related calculators
Other free UK tools that follow on from this calculation.
Dividend vs Salary Calculator
For director-shareholders: all-salary vs all-dividend vs the £12,570 + dividends optimum.
Income Tax Calculator
PAYE tax, National Insurance and take-home pay for any UK salary, including Scotland.
Capital Gains Tax Calculator
CGT on a gain at 18% / 24% above the £3,000 annual exempt amount, with BADR option.
ISA Calculator
Tax-free growth on Cash and Stocks & Shares ISAs within the £20,000 annual allowance.
Reviewed by
Alexandre Bernier, LLM (UK), CFP®, CIM®, PFP®. Financial planner with 18 years in banking and wealth management, holding a UK master of laws and the Canadian CFP®, CIM® and PFP® designations. Writes and reviews every calculator and article on FinanceToolz.
Last updated: August 2026. How figures are sourced, reviewed and corrected is set out in our editorial policy. This is general information, not regulated financial advice.
Sources
Every rate and threshold used by this calculator is taken from the official pages below. If a figure here disagrees with one of these, the official page is right, please tell us.