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UK Dividend Tax Calculator

Estimate the tax on your UK dividend income using 2026/27 dividend allowance and tax band rates. Optional salary input determines which tax band your dividends fall into. Personal Allowance tapers for total income over £100,000.

Dividend income details

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Estimated dividend tax
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Enter your details to calculate

⚠️ Disclaimer: This calculator provides estimates using the displayed assumptions and statutory rates. Check current GOV.UK guidance and your employer or accountant for an exact entitlement.

How to estimate dividend tax

Enter your dividends, other taxable income, and UK tax year to estimate dividend tax after the personal and dividend allowances.

1

Enter dividend income

Enter the total dividends received during the tax year before tax.

2

Add other income

Enter salary or other taxable income so the calculator can place dividends in the correct tax band.

3

Select the tax year

Choose 2024/25, 2025/26, or 2026/27; the dividend allowance and rates vary by year.

4

Interpret the result

Review tax by dividend band, effective rate, total tax, and estimated net dividends. This is an estimate, not a tax return.

Frequently Asked Questions

What is the dividend allowance for 2026/27?

The tax-free dividend allowance is £200 for 2025/26 and subsequent years including 2026/27. For 2024/25 it was £500.

How are dividends taxed?

Dividends are taxed at 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers, and 39.75% for additional rate taxpayers. The first portion up to the dividend allowance is tax-free.

What happens if my total income exceeds £100,000?

Your Personal Allowance reduces by £1 for every £2 of income above £100,000, reaching zero at £125,140. This taper increases your effective tax rate and can push more of your dividends into higher tax bands. This calculator automatically applies the taper.

Do I pay tax on dividends from ISAs?

No. Dividends from stocks and shares held within an ISA are completely tax-free and do not need to be declared.

Do I pay National Insurance on dividends?

No. Dividend income is subject to Income Tax only — you do not pay employee or self-employed National Insurance contributions on dividends. This is one reason dividends are a tax-efficient way to extract profits from a limited company.

When do I need to report dividend income?

If you are employed and your only income is from employment, your employer may collect tax on dividends through PAYE. Otherwise, you may need to file a Self Assessment tax return if your dividend income exceeds £10,000 or you have other reasons to file.