Dividend Tax Rates 2026/27
UK dividend tax rates and the dividend allowance for 6 April 2026 to 5 April 2027, with worked examples and the change from last year.
2026/27 rates · verified 11 October 2026
| 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% |
The basic and higher dividend rates went up by 2 percentage points on 6 April 2026. The additional rate is unchanged.
Examples for company directors
With a £12,570 salary (using the Personal Allowance) and the rest as dividends:
| Dividends | Dividend tax | Effective rate on dividends |
|---|---|---|
| £10,000 | £1,021.25 | 10.2% |
| £20,000 | £2,096.25 | 10.5% |
| £30,000 | £3,171.25 | 10.6% |
| £37,700 | £3,999.00 | 10.6% |
| £50,000 | £8,396.25 | 16.8% |
| £75,000 | £17,333.75 | 23.1% |
| £100,000 | £27,842.50 | 27.8% |
Which band do my dividends fall in?
Dividends sit on top of your other income. If your salary already uses the basic rate band, all your dividends above £500 are taxed at 35.75%. The bands are the UK-wide ones (£12,571 to £50,270 basic, £50,271 to £125,140 higher), even for Scottish taxpayers.
Dividend tax rates by year
| Tax year | Allowance | Basic | Higher | Additional |
|---|---|---|---|---|
| 2026/27 | £500 | 10.75% | 35.75% | 39.35% |
| 2025/26 | £500 | 8.75% | 33.75% | 39.35% |
| 2024/25 | £500 | 8.75% | 33.75% | 39.35% |
Previous years from GOV.UK rates and allowances.
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.
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.