Dividend Tax Calculator 2026/2027

  • Use this calculator for: dividends from shares you hold in someone else's company — publicly listed stocks (held outside an ISA), funds / ETFs / REITs distributions, or a minority stake in a private company. It computes the personal-tax slice only.
  • Don't use this if you own your own Ltd — the Limited Company calculator models the full pipeline (Corporation Tax + Employer NI + your PAYE + dividend tax) and has a salary/dividend split optimiser.
  • ISA / pension dividends are tax-free — don't enter them here. Only General Investment Account (GIA) dividends are taxable.
  • Dividend allowance: £500 from 2024/25 (was £1,000 / £2,000 earlier). Taxed at 0% but uses up basic band space.
  • Above the allowance, dividends are taxed by the band the cumulative income falls into: 8.75% basic, 33.75% higher, 39.35% additional (2024/25 & 2025/26). For 2026/27: 10.75% / 35.75% / 39.35% (Autumn 2025 Budget).
  • Scotland's income-tax bands apply to your salary / other income, but dividend tax is not devolved — Scottish taxpayers still use the rUK bands for the dividend portion.
  • HMRC ordering: Personal Allowance is used against non-savings non-dividend income first, then dividends sit on top.
Dividend Tax Calculator

For dividends received from shares you don't run yourself — public stocks (outside an ISA), funds, ETFs, REITs, or a minority stake. Slots dividends into the right band on top of your salary / self-employment / rental income using HMRC's ordering rule.

Run your own Ltd? Use the Limited Company calculator instead — it adds Corporation Tax + Employer NI + salary/dividend split optimisation.

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How UK dividend tax works

Dividends are taxed after all other income, sitting on top of salary, self-employment profit or rental income in the tax bands. The first £500 each tax year is covered by the dividend allowance and is tax-free. Above that, the rate depends on which band the dividends fall into: 8.75% (basic rate), 33.75% (higher rate) or 39.35% (additional rate).

Enter your salary or other income alongside your dividend amount — the calculator stacks them correctly and shows how much of your dividend falls into each band. Scottish income tax bands apply to salary and self-employment income, but dividend tax is not devolved: all UK taxpayers use the same dividend rates regardless of where they live.

Useful for directors deciding how much to draw from a limited company, investors managing ISA versus general investment account allocations, or anyone checking whether a large dividend will push them into the higher-rate band.