Dividend Tax Calculator
Calculate tax on dividend income for 2026/27 tax year
Last updated: May 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%
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