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Dividend tax calculator

Tax year 2026/27

See how much tax you pay on dividends, on top of your other income.

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Your dividend tax

Enter your dividends and other income, then press Calculate. Your result appears here straight away.

How dividend tax works

Dividends are taxed differently from wages. You get a dividend allowance of £500 a year, and dividends above it are taxed at these rates (GOV.UK: tax on dividends):

Dividend tax rates, 2026/27
Band your dividends fall inRate
Basic rate10.75%
Higher rate35.75%
Additional rate39.35%

Dividends sit on top of your other income

Which band your dividends fall in depends on your other income. HMRC treats your salary, pension and other income as the first slice, then savings interest, and dividends as the top slice (HMRC manual SAIM1090). Your Personal Allowance is used against your other income first, and any of it left over covers dividends.

Dividends inside the £500 allowance are not taxed, but they still use up part of your basic or higher rate band (HMRC dividend allowance factsheet). That can push more of your dividends into a higher band.

A worked example

Take wages of £29,570 and dividends of £3,000, in England. After the Personal Allowance, £17,000 of the wages is taxed as normal. The dividends come next: the first £500 is covered by the dividend allowance, and the remaining £2,500 falls in the basic rate band, taxed at 10.75%. The dividend tax is £268.75.

If you live in Scotland

Scottish taxpayers pay the same tax as the rest of the UK on dividends (GOV.UK: Scottish Income Tax). This calculator uses the UK dividend rates and bands for everyone. Scottish rates still apply to your wages, which is shown as the tax on your other income.

Earning over £100,000

Dividends count towards your income for the Personal Allowance test. If your wages and dividends together are over £100,000, your Personal Allowance starts to shrink, which this calculator includes.

Telling HMRC

If your dividends are more than your unused Personal Allowance and your dividend allowance, you need to report them to HMRC (GOV.UK: tax on dividends).

What this calculator includes and leaves out

  • It includes your other income, such as salary or pension, your dividends, the Personal Allowance and its taper, and the dividend allowance.
  • It leaves out savings interest. Savings interest may have its own allowances and can change your tax. Check GOV.UK.
  • It leaves out dividends from shares in an ISA, which are not taxed (GOV.UK), and any other reliefs or deductions.
  • It works out income tax only.