Updated for 2025/26 tax year
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Dividend Tax Calculator

Calculate the tax you'll owe on your dividend income in the UK for the 2026/27 tax year.

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Your Income

£
£

Your Dividend Tax Estimate

Total Dividend Tax

£3328.75

10.75%

Basic Rate

35.75%

Higher Rate

39.35%

Additional Rate

Breakdown

Tax-free allowance£500.00
Taxable dividends£9500.00
Basic Rate (10.75%)£29.02
Higher Rate (35.75%)£3299.72
Additional Rate (39.35%)£0.00
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Understanding Dividend Tax

Dividend tax is a tax on income you receive from shares you own in a company. The amount of tax you pay depends on your total income and the amount of dividend income you receive in a tax year (6th April to 5th April). At Calculator Site, we've designed this tool to give you a clear estimate of your liability.

For the 2026/27 tax year, every individual has a £500 dividend allowance. This means the first £500 of your dividends are completely tax-free. Any dividends you receive above this allowance will be taxed at a rate determined by your income tax band. You can see a full breakdown of your potential tax using our Take-Home Pay Calculator.

Tip: Dividends are taxed after other income

Your dividend income is 'stacked' on top of your other income to determine the tax rate. The calculator does this automatically. It first allocates your Personal Allowance to your salary or other earnings, and then applies the appropriate dividend tax rate to the dividend income that falls into each band. For a complete view of your taxes, try our Income Tax Calculator.

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How Dividend Tax is Calculated

Your total income (excluding dividends) is used to see how much of your Personal Allowance (£12,570 for 2026/27) has been used. Your dividend income is then added on top. The first £500 is covered by your dividend allowance, and any remaining dividend income is then taxed according to the tax bands it falls into.

These are the dividend tax rates for the 2026/27 tax year. The calculator applies these rates to the portion of your dividend income that falls into each respective tax bracket.

How to use this Calculator Site tool

Simply enter your total annual income (excluding dividends) and your total annual dividend income into the fields provided. The calculator will instantly show you your estimated dividend tax liability for the 2026/27 tax year, along with a detailed breakdown of how it's calculated. For official dividend tax rates, visit GOV.UK dividend tax guide.

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Frequently Asked Questions

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