UK Dividend Tax Calculator
The UK dividend allowance is £500, and dividend tax rates changed from 6 April 2026. This calculator shows how much dividend tax you owe based on your other taxable income and dividend income.
Educational estimate. Calculator results are for planning and information only, not financial, tax, medical, legal, or engineering advice. Verify important decisions with official sources or a qualified professional.
UK Dividend Tax Calculator
Dividend Tax After the £500 Allowance Cut
📐 Formula & Method
Dividend Tax Bands 2026-27
Dividends sit on top of other income in the tax calculation. The personal allowance (£12,570) is used against other income first in this model.
📋 How to Use
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1
Enter your other taxable income (salary etc.).
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2
Enter your total dividend income.
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3
See the dividend tax payable split by band.
UK Dividend Tax — Current Rates and Allowance
The dividend allowance is £500. Dividends inside that allowance are taxed at 0%, but they still use up part of the tax band they fall into. Dividends received inside a Stocks & Shares ISA remain tax-free.
For 2026-27, GOV.UK lists dividend tax rates of 10.75% for basic rate, 35.75% for higher rate, and 39.35% for additional rate taxpayers on dividends above the allowance. Director-shareholders and investors receiving dividends outside an ISA should check where those dividends sit after salary and other taxable income.
🔬 Methodology & Accuracy
Formula: Applies the UK dividend allowance, then taxes dividend income above available personal allowance and dividend allowance across basic, higher, and additional rate bands.
Data sources: GOV.UK tax on dividends: https://www.gov.uk/tax-on-dividends; GOV.UK income tax rates and allowances: https://www.gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
Last reviewed: June 2026 · General formula used: Dividend Tax Bands 2026-27 · Accuracy: Results are precise to two decimal places using IEEE-754 double-precision arithmetic. Intended for educational and planning use only.
For informational purposes only. Results are estimates based on the inputs and formulas provided. For financial, tax, medical, or legal decisions, consult a qualified professional. Rates and regulations change — always verify current figures with official sources.