UK Dividend Tax Calculator
Calculate the tax due on dividend income for shareholders and company directors, including the dividend allowance.
2026/27 rates · last verified 15 August 2026
Dividend tax bands are set UK-wide, so this doesn't change with region — only your Income Tax on other income does.
Dividend Tax breakdown
| Band | Taxed at | Amount in band | Tax |
|---|---|---|---|
| Dividend allowance | 0% | £500.00 | £0.00 |
| Basic rate | 10.8% | £9,500.00 | £1,021.25 |
How this is calculated
Dividend income is taxed at different rates from salary, with its own tax-free allowance. This calculator combines your other income with dividends to show the correct dividend tax due.
Dividends are taxed after your Personal Allowance and any other income has used up its share of the tax bands — so a director who also draws a salary will usually see at least some dividends taxed at the higher dividend rate, even if the salary alone stays in the basic rate band. The first £500 of dividend income each year is covered by the dividend allowance and isn't taxed, though it still counts towards your total income for things like the Personal Allowance taper.
Dividend tax bands and rates are set UK-wide, so they don't change if you're a Scottish taxpayer — only the Income Tax on your other income does, since Scottish Income Tax rates are devolved but dividend tax isn't.
Read more: Dividend tax explained: how much tax do you pay on dividends? →
Frequently asked questions
What is the dividend allowance?
Every tax year, a set amount of dividend income is tax-free before the dividend tax rates apply. This is separate from the Personal Allowance.
Do I pay dividend tax through my company or personally?
Dividend tax is a personal tax, paid by the shareholder through Self Assessment — it is not deducted by the company before payment.
What dividend tax rates apply above the allowance?
10.75% if the dividend falls in the basic rate band, 35.75% in the higher rate band, and 39.35% in the additional rate band for 2026/27.
Do dividends from an ISA count?
No — dividends from shares held in an ISA are always tax-free and don't need to be included here or reported to HMRC.
How do I actually pay dividend tax?
If your dividends are above the £500 allowance, you report them on a Self Assessment tax return and pay by 31 January following the end of the tax year, alongside any other tax you owe.
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