Dividend Tax Calculator UK 2026/27
Calculate income tax on UK dividend payments.
£
£
| Gross Dividends | £10,000 |
| Dividend Allowance | −£500 |
| Taxable Dividends | £9,500 |
| Basic rate (8.75%) | −£831 |
| Dividend Tax | −£831 |
UK dividends are taxed at special rates — lower than income tax on salaries. This calculator shows your dividend tax bill based on your employment income and the 2026/27 dividend rates.
How It Works
Dividend tax rates 2026/27:
- Dividend Allowance: first £500 is tax-free
- Basic rate: 8.75% (if dividends fall in the basic rate band)
- Higher rate: 33.75% (if dividends fall in the higher rate band)
- Additional rate: 39.35% (if dividends exceed £125,140)
Dividends are added on top of your other income to determine which band they fall in. National Insurance is not charged on dividends.