Dividend Tax Calculator 2026/27
Work out the tax on your dividends, after the £500 dividend allowance, based on your salary or other income. Uses the higher 2026/27 dividend rates.
2026/27 rates · verified 11 October 2026
Company directors often take a £12,570 salary and the rest as dividends.
Dividend tax rates 2026/27
| Tax band | Dividend tax rate | 2025/26 rate |
|---|---|---|
| Dividend allowance | 0% on the first £500 | 0% on the first £500 |
| Basic rate | 10.75% | 8.75% |
| Higher rate | 35.75% | 33.75% |
| Additional rate | 39.35% | 39.35% |
How dividend tax is worked out
- Add your dividends to your other income.
- Your Personal Allowance is used by your salary first, then dividends.
- The first £500 of dividends is taxed at 0%.
- The rest is taxed at 10.75%, 35.75% or 39.35% depending on which band it falls in, after your other income.
Dividends don't attract National Insurance, which is why many company directors pay themselves a small salary and the rest as dividends. Corporation Tax is paid on company profits before dividends.
Frequently asked questions
What are the dividend tax rates for 2026/27?
10.75% for basic rate taxpayers, 35.75% for higher rate and 39.35% for additional rate, on dividends above the £500 dividend allowance.
Did dividend tax go up in April 2026?
Yes. The basic and higher dividend rates rose by 2 percentage points from 6 April 2026, from 8.75% to 10.75% and from 33.75% to 35.75%. The additional rate stayed at 39.35%.
What is the dividend allowance?
£500. The first £500 of dividends each year is taxed at 0%, but still counts towards your income when working out which band the rest falls in.
Do Scottish taxpayers pay different dividend tax?
No. Dividends are taxed at UK rates, using the UK bands, wherever you live.
Are dividends in an ISA taxed?
No. Dividends from shares held in an ISA are tax free and don't use your allowance.
Related calculators
All rates, thresholds and dates on this page come from official sources, including GOV.UK, HM Revenue and Customs, the Scottish Government, Revenue Scotland and the Welsh Government. Last verified 11 October 2026.