How Much Is Dividend Tax in the UK? 2026/27 Rates and Calculator

How much is dividend tax in the UK this year? Enter your dividends and other income to see the tax due, the band each pound falls in and what you keep, using the 2026/27 rates confirmed on GOV.UK.

  • ✓ New 10.75% and 35.75% rates built in
  • ✓ Handles salary, Scotland and the £100,000 taper
  • ✓ Nothing you type leaves your browser

Updated 7 November 2026 · Written by Swapan Jr · Reviewed by Shamayun Chowdhury

See worked examples

Dividend tax calculator 2026/27

Enter your yearly figures. Results update as you type and stay in your browser.

£0

dividend tax to pay for 2026/27

£0dividends you keep
0%effective rate
£0tax on all income

Uses GOV.UK rates for 2026/27. Savings interest is not included. It is a guide, not tax advice.

£500

Tax-free dividend allowance

%

Basic rate

%

Higher rate

%

Additional rate

How much is dividend tax UK taxpayers pay, in short?

For 2026/27, the first £500 of dividends is tax-free. After that, dividends are taxed at 10.75% within the basic rate band, 35.75% within the higher rate band and 39.35% above £125,140. Dividends are added on top of your salary and other income, so a director paid £12,570 who takes £20,000 in dividends pays about £2,096, while someone already earning £60,000 pays 35.75% on dividends above the allowance.

How much dividend tax do you pay on common amounts?

England, Wales and Northern Ireland figures for 2026/27, with no savings interest. Press a button to load them into the calculator.

£10,000 dividends

With a £12,570 salary

£1,021

dividend tax for 2026/27
Try these figures
  • ✓ £500 tax-free allowance
  • ✓ £9,500 at 10.75%
  • ✓ You keep £8,979
  • ✓ Effective rate: 10.2%

£20,000 dividends

With a £12,570 salary

£2,096

dividend tax for 2026/27
Try these figures
  • ✓ £500 tax-free allowance
  • ✓ £19,500 at 10.75%
  • ✓ You keep £17,904
  • ✓ Effective rate: 10.5%

£40,000 dividends

With a £12,570 salary

£4,821

dividend tax for 2026/27
Try these figures
  • ✓ £37,200 at 10.75%
  • ✓ £2,300 at 35.75%
  • ✓ You keep £35,179
  • ✓ Effective rate: 12.1%

£2,000 dividends

On top of a £30,000 salary

£161

dividend tax for 2026/27
Try these figures
  • ✓ £500 tax-free allowance
  • ✓ £1,500 at 10.75%
  • ✓ You keep £1,839
  • ✓ Report to HMRC

£5,000 dividends

On top of a £35,000 salary

£484

dividend tax for 2026/27
Try these figures
  • ✓ £500 tax-free allowance
  • ✓ £4,500 at 10.75%
  • ✓ You keep £4,516
  • ✓ Still within the basic band

£5,000 dividends

On top of a £60,000 salary

£1,609

dividend tax for 2026/27
Try these figures
  • ✓ £500 tax-free allowance
  • ✓ £4,500 at 35.75%
  • ✓ You keep £3,391
  • ✓ Higher rate applies

Where does £40,000 of dividends go?

A company director paid a £12,570 salary takes £40,000 in dividends in 2026/27.

%

Kept

%

Tax at 10.75%

%

Tax at 35.75%

How much is dividend tax UK: financial documents and charts on a desk

The salary uses the whole Personal Allowance, so every pound of dividend is taxable. The first £500 is covered by the dividend allowance, the next £37,200 fills the rest of the basic rate band at 10.75% (£3,999) and the last £2,300 is taxed at 35.75% (£822). Total dividend tax is about £4,821, leaving £35,179.

What are the dividend tax rates for 2026/27?

These rates apply from 6 April 2026 to 5 April 2027 and are taken from GOV.UK.

Band2026/27 rate (2025/26)
Dividend allowance0% on first £500
Basic rate10.75% (was 8.75%)
Higher rate35.75% (was 33.75%)
Additional rate39.35% (unchanged)
BandTotal income
Personal AllowanceUp to £12,570
Basic rate£12,571 to £50,270
Higher rate£50,271 to £125,140
Additional rateOver £125,140
Dividends in the yearWhat to do
Up to £500Nothing to report
£501 to £10,000Tell HMRC or use Self Assessment
Over £10,000File a Self Assessment return

Rate on each slice of dividends

Each rate applies only to the dividends that fall inside that band.

  • Basic rate 10.75% 10.75%
  • Higher rate 35.75% 35.75%
  • Additional rate 39.35% 39.35%

How is dividend tax worked out, step by step?

  1. Add up all your income. Salary, pension, rental profit, savings interest and dividends.
  2. Apply the Personal Allowance. £12,570, reduced by £1 for every £2 of income over £100,000. It is used against other income first.
  3. Put dividends on top. HMRC treats dividends as the highest part of your income, after wages and savings.
  4. Take off the £500 allowance. It is taxed at 0% but still uses up band space.
  5. Tax the rest by band. 10.75%, 35.75% or 39.35%, depending on where each pound lands.

GOV.UK worked example

£29,570 wages and £3,000 dividends

£268.75

dividend tax for 2026/27
Load this example
  • ✓ Taxable wages: £17,000
  • ✓ £500 of dividends at 0%
  • ✓ £2,500 at 10.75%
  • ✓ All within the basic band

Is dividend tax different in Scotland?

No. GOV.UK confirms that Scottish taxpayers pay the same tax on dividends as the rest of the UK. The 10.75%, 35.75% and 39.35% rates apply, and the UK band limits decide which rate each pound of dividends falls into.

What does change is the tax on your wages or pension, because Scottish rates and bands apply to that income. In the calculator, choosing Scotland changes the tax on your other income but not the dividend tax.

Same dividends, different salary tax

Worked exampleResult
Wages£29,570
Dividends£3,000
Dividend tax, anywhere in the UK£268.75
Tax on wages, England£3,400
Tax on wages, Scotland£3,361

How do you tell HMRC about dividends and pay the tax?

Up to £500

Dividends within the £500 allowance are tax-free and you do not need to tell HMRC about them.

£501 to £10,000

Tell HMRC after the tax year ends and before 5 October. They can change your tax code to collect the tax, or you can include the dividends on a Self Assessment return you already file.

Over £10,000

You must file a Self Assessment tax return. Register by 5 October after the tax year ends and pay any tax due by 31 January.

What else affects how much dividend tax you pay?

Income over £100,000

Dividends count towards the £100,000 limit. Above it, your Personal Allowance falls by £1 for every £2, and it is gone at £125,140. That raises the tax on the rest of your income as well as on dividends.

Shares held in an ISA

Dividends from shares in an ISA are tax-free and do not use the £500 allowance.

Savings interest

Savings interest sits between wages and dividends. The Personal Savings Allowance is £1,000 for basic rate taxpayers, £500 for higher rate and nothing for additional rate. A starting rate for savings of up to £5,000 applies if your other income is under £17,570. This calculator leaves savings out.

Company directors

Dividends are paid from company profits after Corporation Tax. GOV.UK sets Corporation Tax at 19% for profits under £50,000 and 25% above £250,000, with Marginal Relief in between. Those limits are shared between associated companies.

What mistakes do people make with dividend tax?

Thinking the £500 allowance adds to the basic rate band

The allowance is taxed at 0% but it still uses up part of your band. A large dividend can push the rest into the higher rate sooner than expected.

Using last year's rates

Many websites still show 8.75% and 33.75%. For 2026/27 the rates are 10.75% and 35.75%.

Forgetting dividends count as income

Dividends are added to your other income. They can push you over £50,270, £100,000 or the High Income Child Benefit Charge threshold.

Missing the reporting deadline

If you need to register for Self Assessment, do it by 5 October after the tax year ends. The tax is due by 31 January.

Frequently asked questions

How much is dividend tax in the UK for 2026/27?

The first £500 of dividends is tax-free. Above that, dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. Which band applies depends on your total income, because dividends sit on top of your salary and other income.

How much dividend can I take tax-free?

You pay no tax on dividends covered by your Personal Allowance of £12,570, if your other income has not used it up, plus the £500 dividend allowance. Someone with no other income could receive £13,070 of dividends with no tax to pay.

Do I pay tax on dividends under £500?

No. Dividends within the £500 dividend allowance are not taxed and you do not need to tell HMRC about them. They still count towards your income when HMRC works out which tax band your other dividends fall into.

How much tax will I pay on £10,000 of dividends?

With a salary of £12,570 and £10,000 of dividends, about £1,021 is due: £500 is tax-free and £9,500 is taxed at 10.75%. If your salary is already above £50,270, the same £10,000 would cost about £3,396 at 35.75%.

Why did dividend tax go up in April 2026?

GOV.UK confirms the basic dividend rate rose from 8.75% to 10.75% and the higher rate from 33.75% to 35.75% from 6 April 2026. The additional rate stayed at 39.35%.

Is dividend tax different in Scotland?

No. Scottish taxpayers pay the same dividend tax rates and use the same UK band limits for dividends as the rest of the UK. Scottish rates only apply to wages, pensions and other non-savings income.

Do I need to do a Self Assessment for dividends?

Only if your dividends are over £10,000 or you already file a return. Between the £500 allowance and £10,000 you can tell HMRC instead, and they can collect the tax through your tax code. Dividends within the allowance do not need reporting.

Are dividends in an ISA taxed?

No. GOV.UK confirms you do not pay tax on dividends from shares held in an ISA, and they do not use up your £500 dividend allowance.

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About this page

Written by Swapan Jr, content writer at Merin Tax Return.

Reviewed by Shamayun Chowdhury, Senior Accountant.

Last updated 7 November 2026. Figures cover the 2026/27 tax year and were checked against GOV.UK. This page gives general information, not personal tax advice.

Sources