Dividend tax calculator for 2026/27
Estimate dividend tax for 2026/27 from your annual salary and dividends. Dividends sit above salary and can reduce your personal allowance.
Your annual dividend tax
Tax year 2026-27. GOV.UK rates checked .
- Dividends after dividend tax
- Personal allowance after taper
- Dividend allowance used
- Dividends charged above the allowances
- Salary income tax
- Extra salary tax from the allowance taper
- Total salary and dividend income tax
- Extra income tax from dividends, including the taper
Extra income tax includes any salary tax increase from losing personal allowance. Dividends after dividend tax does not deduct that salary tax increase.
| Band | Rate | Dividends charged | Tax |
|---|---|---|---|
| Basic | 10.75% | ||
| Higher | 35.75% | ||
| Additional | 39.35% |
Assumptions and limits
UK resident with annual salary and dividends outside ISAs only. Salary means pay after any salary sacrifice. Salary and all dividends count towards the personal allowance taper. The personal allowance covers salary first, then dividends. Dividends sit above salary and use UK bands in both regions. The dividend allowance is a nil rate and still uses tax band space. Salary uses the selected region: England, Wales or Northern Ireland by default, or Scotland. Dividend rates and bands are the same across the UK. Keep full precision during calculation and round displayed amounts to pennies.
Not modelled
Savings interest, rental income, benefits in kind, foreign tax credits and special dividend reliefs. Pension tax relief, Gift Aid, Marriage Allowance and other personal reliefs. National Insurance, student loans, employer charges, Corporation Tax and individual tax codes. This is not a company profit or take-home pay calculation.
Sources and check dates are listed below.
This calculator uses 2026-27 rates. See the Budget tracker for later announcements.
Follow the Budget tracker’s dividend updates. See how the personal allowance taper works or browse all tax calculators.
For savings held in an ISA, read the ISA and UK bank account guide.
What do the worked examples show?
These examples use England, Wales and Northern Ireland salary rates and no other income or reliefs. Figures come from the calculator engine using the dated GOV.UK rules below.
| Salary and dividends | Dividend tax | Extra salary tax from taper | Total income tax |
|---|---|---|---|
| £30,000.00 salary + £10,000.00 dividends | £1,021.25 | £0.00 | £4,507.25 |
| £50,000.00 salary + £20,000.00 dividends | £6,971.25 | £0.00 | £14,457.25 |
| £100,000.00 salary + £20,000.00 dividends | £6,971.25 | £4,000.00 | £38,403.25 |
| £150,000.00 salary + £50,000.00 dividends | £19,478.25 | £0.00 | £73,181.25 |
What are dividend tax rates for 2026/27?
The dividend allowance is £500.00. Rates apply to dividends left after the personal allowance and dividend allowance. The dividend allowance still uses tax band space.
| Band | Taxable income band | Dividend rate |
|---|---|---|
| Basic (ordinary) | Up to £37,700.00 | 10.75% |
| Higher (upper) | Above £37,700.00 to £125,140.00 | 35.75% |
| Additional | Above £125,140.00 | 39.35% |
Taxable income means salary and dividends after personal allowance, including dividends covered by the dividend allowance. These are band limits, not gross salary thresholds.
The standard personal allowance is £12,570.00. It falls by £1 for every £2 of adjusted net income above £100,000.00. Here, adjusted net income is your salary plus dividends. HM Treasury: Budget 2026 rates and allowances, checked 29 October 2026.
Dividend tax UK: common questions
How much dividend income is tax-free in 2026/27?
The dividend allowance is £500.00. Dividends covered by unused personal allowance are also free of tax. Dividends from shares in an ISA are tax-free and should be left out of this calculator.
Does salary affect dividend tax?
Yes. Salary uses tax bands before dividends. Salary and dividends together also count towards the personal allowance taper, so dividends can increase the tax on your salary.
Are dividend tax rates different in Scotland?
No. Dividends use the same rates and bands across the UK. Scottish rates apply to salary, so the salary tax and the cost of losing personal allowance can differ.
Does the dividend allowance use up a tax band?
Yes. It gives a nil rate on part of your dividends. That part still counts towards your income and uses band space, so it can push the remaining dividends into a higher band.
Sources and dates
GOV.UK: Tax on dividends. Current 2026-27 rates and allowance; accessed and checked 25 October 2026.
HMRC SAIM1080: the dividend allowance is a nil rate. Manual updated 7 April 2026; accessed and checked 25 October 2026.
HMRC SAIM1090: dividends are the highest part of total income. Manual updated 7 April 2026; accessed and checked 25 October 2026.
GOV.UK: Income Tax rates and personal allowance taper. Undated guidance; accessed and checked 25 October 2026.
GOV.UK: Scottish Income Tax, UK rates on dividends. Undated guidance; accessed and checked 25 October 2026.