Free tools · Dividends
Dividend tax calculator
Estimate the tax on your dividends for 2025/26 or 2026/27. Enter your salary (or other income) and your dividends — the calculator applies the £500 allowance and stacks the dividends on top at the right rate. England, Wales & NI.
Used first — dividends are taxed on top.
£500 dividend allowance applied. Dividend rates 10.75% / 35.75% / 39.35%.
Estimates for England, Wales & Northern Ireland — Scottish income tax bands differ. Figures are a guide only, calculated on an annual basis, and don't cover every personal circumstance (other income, reliefs, pensions, benefits in kind, marriage allowance, etc.). Always confirm your position at gov.uk or with your accountant.
Dividend rates went up for 2026/27
Dividends sit on top of your other income. Salary uses up your personal allowance and tax bands first, then the first £500 of dividends is tax-free. The rest is taxed at the dividend rate for the band it lands in. At the Autumn Budget 2025 the ordinary and upper dividend rates rose by two points from 6 April 2026:
| Band | 2025/26 | 2026/27 |
|---|---|---|
| Ordinary (basic) | 8.75% | 10.75% |
| Upper (higher) | 33.75% | 35.75% |
| Additional | 39.35% | 39.35% |