Dividend Tax Calculator 2026/27
Calculate UK dividend tax for 2026/27 using the £500 dividend allowance and the new 10.75% and 35.75% rates. Ideal for limited company directors.
| Band | Rate | Dividends | Tax |
|---|
How we worked this out
- Your other income uses up your personal allowance first.
- Dividends sit on top. The first slice is covered by the dividend allowance.
- Each remaining pound is taxed at the dividend rate for the UK band it lands in (basic, higher or additional).
Rates for 2026/27, last checked 29 October 2026.
How the calculation works
Your other income (salary, pension or self-employed profit) uses your personal allowance first. Dividends are then stacked on top. The first £500 of taxable dividends is tax-free, and the rest is taxed at the dividend rate for the band it falls in. The maths is done slice by slice, so the table shows exactly where each pound lands.
2026/27 dividend rates
| Band (taxable income) | Rate |
|---|---|
| Dividend allowance (first £500) | 0% |
| Basic rate (up to £50,270 total income) | 10.75% |
| Higher rate (£50,271 to £125,140) | 35.75% |
| Additional rate (over £125,140) | 39.35% |
The basic and higher dividend rates rose by 2 percentage points from 6 April 2026. The personal allowance is reduced by £1 for every £2 of total income over £100,000, including dividends.
Things this calculator does not include
- Income tax and National Insurance on your salary.
- Savings interest and the personal savings allowance.
- Pension contributions or Gift Aid, which extend your bands.
- Corporation tax paid by your company before the dividend.
Official figures: GOV.UK tax on dividends. Check a director’s salary with the take-home pay calculator.
Frequently asked questions
What are the dividend tax rates for 2026/27?
10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, after a £500 dividend allowance.
How much dividend can I take tax-free?
Any of your £12,570 personal allowance not used by other income, plus the £500 dividend allowance. A director on a £12,570 salary can take £500 of dividends tax-free.
Does the dividend allowance use up my tax band?
Yes. Dividends covered by the allowance still count towards your basic and higher rate bands, which can push later dividends into a higher rate.
Do Scottish taxpayers pay different dividend tax?
No. Dividend tax uses the UK band limits and rates wherever you live, although Scottish rates apply to your salary.