Use this dividend tax calculator to see how much tax you pay on dividends from shares, funds or your own limited company. Enter your dividends and your other income, and it applies the £500 dividend allowance and the 2026/27 dividend tax rates of 10.75%, 35.75% and 39.35%.
Your dividend tax
- Dividend tax
- –
- Tax-free dividends
- –
- Effective rate on dividends
- –
- Your tax band
- –
In the example, £10,000 of dividends on top of a £45,000 salary gives a dividend tax bill of £2,203.75, because part of the dividends falls into the higher rate band.
How to use the dividend tax calculator
- Enter your total dividends for the tax year, outside ISAs and pensions.
- Enter your other income: salary, pension, self-employed profit, rent and savings interest.
- Read your result. The calculator shows the tax, how much of your dividends are tax-free and your tax band.
Dividend tax rates for 2026/27
Dividend rates went up by 2 percentage points for the basic and higher rates from 6 April 2026. The GOV.UK guide to tax on dividends sets out the bands:
| Tax band | Dividend tax rate |
|---|---|
| Dividend allowance (first £500) | 0% |
| Basic rate | 10.75% |
| Higher rate | 35.75% |
| Additional rate | 39.35% |
Dividend tax examples
Here is what the dividend tax calculator gives for £10,000 of dividends at different levels of other income:
| Other income | Tax on £10,000 of dividends | Effective rate |
|---|---|---|
| £0 | £0 | 0.0% |
| £12,570 | £1,021 | 10.2% |
| £30,000 | £1,021 | 10.2% |
| £45,000 | £2,204 | 22.0% |
| £60,000 | £3,396 | 34.0% |
| £130,000 | £3,738 | 37.4% |
Salary and dividend calculator for company directors
Many limited company directors pay themselves a small salary and the rest as dividends. With a £12,570 salary and £37,430 of dividends, the personal tax on dividends is £3,969.97, and the salary is free of Income Tax. The company pays Corporation Tax on its profits before dividends, so add that from the corporation tax calculator for the full picture.
Dividends can only be paid from profits after Corporation Tax, and they are not a business expense. A salary is an expense but can mean employer and employee National Insurance. The right mix depends on your profits, other income and pension plans.
How dividend tax is worked out
The dividend tax calculator follows the same order HMRC uses:
- Add up your income. Salary, pensions, profits and rent come first, then savings interest, then dividends on top.
- Use any Personal Allowance left. If your other income is under £12,570, the unused allowance covers dividends first.
- Apply the £500 dividend allowance. These dividends are taxed at 0%, but they still use up part of your band.
- Tax the rest at the dividend rates for whichever band each pound falls in.
Because the £500 allowance uses band space, a large dividend can still push some income into the higher rate. If your total income goes over £100,000, your Personal Allowance is also reduced by £1 for every £2 above that.
Reporting and paying dividend tax
- Up to £500: no tax and nothing to report.
- £500 to £10,000: you can ask HMRC to change your tax code, or report on a Self Assessment return if you already complete one.
- Over £10,000: you must complete a Self Assessment tax return. Tax is due by 31 January after the tax year.
Related tax calculators
If you sell your shares, use the capital gains tax calculator. For bank interest, try the savings tax calculator.
Frequently asked questions
How much tax do I pay on £5,000 of dividends?
With a £30,000 salary, £483.75. With a £60,000 salary, £1,608.75, because all of the taxable dividends fall in the higher rate band.
Are ISA dividends taxed?
No. Dividends inside a stocks and shares ISA or a pension are tax-free and do not count towards the £500 allowance.
Do dividends use up my Personal Allowance?
Yes, if your other income is below £12,570. Any unused Personal Allowance covers dividends first, then the £500 dividend allowance applies.
Do Scottish taxpayers pay different dividend tax?
No. Dividend tax uses UK-wide rates and bands, even if you pay Scottish Income Tax on your salary.
About this calculator
This dividend tax calculator uses 2026/27 rates checked against GOV.UK on 9 November 2026. It treats your other income as non-savings income and does not include savings interest. Results are estimates for planning.