🇬🇧 United KingdomTax year 2026/27 · 6 Apr 2026–5 Apr 2027UK-wide dividend rates

UK Dividend Tax Calculator 2026/27

Dividend tax rose in April 2026. See exactly how your dividends are taxed in 2026/27 at 10.75%, 35.75% or 39.35% once they are stacked on top of your salary and savings.

Extra tax because of your dividends

£1,021.25 for 2026/27

Dividends sit on top of your other income: first £500 at 0%, then 10.75% (basic), 35.75% (higher) or 39.35% (additional) depending on the band they land in.

Dividend allowance used£500

Taxable dividends£10,000

Tax on dividends£1,021.25

Dividends kept£8,979

Breakdown

Item	Amount
Dividend income	£10,000.00
Dividend Allowance (first £500 at 0%)0% on £500.00	£0.00
Basic rate on dividends10.75% on £9,500.00	−£1,021.25
Tax on dividends	−£1,021.25
Dividends after tax	£8,978.75

Your dividends by band

Dividend Allowance (0%) (5%)£500
Basic rate (10.75%) (95%)£9,500

Effective rate10.2%

Extra tax ÷ dividends received.

Assumptions

England taxpayer: dividends are taxed at UK dividend rates (10.75%, 35.75%, 39.35%) in every part of the UK.
Income is stacked in the statutory order: earnings and other income, then savings, then dividends.
The Dividend Allowance is a 0% band: allowance-covered dividends still use up basic- and higher-rate band space.
Dividends held in an ISA or pension are tax-free and should not be entered.

How this was calculated

Dividend tax rates 2026/27
Dividend band (2026/27)	Rate
Dividend Allowance: first £500	0%
Basic-rate band	10.75%
Higher-rate band	35.75%
Additional-rate band	39.35%

1. Set the Personal Allowance against salary, then savings, then dividends
2. Place dividends on top of all other income
3. First £500 of dividends at 0% — it still fills band space
4. Tax the rest at the rate of the band each pound lands in

Worked examples

£30,000 salary and £10,000 dividends: the dividends sit between £30,000 and £40,000, all within the basic-rate band. £500 is tax-free and £9,500 × 10.75% = £1,021.25.

£45,000 salary and £10,000 dividends: after the allowance, part of the dividends cross the £50,270 higher-rate threshold, so the tax is £2,203.75.

The 10.75% and 35.75% rates apply from 6 April 2026 (previously 8.75% and 33.75%). The additional rate stays at 39.35%.

Official sources

Tax on dividends (opens in a new tab) — GOV.UK
Changes to tax rates for property, savings and dividend income (opens in a new tab) — HMRC
Income Tax rates and Personal Allowances (opens in a new tab) — GOV.UK

Rule review

Jurisdiction: United Kingdom
Tax year: 2026/27 (6 Apr 2026–5 Apr 2027)
Rule version: uk-2026-27.1
Last reviewed: 7 October 2026
Review: Rates checked against the GOV.UK/HMRC pages listed; formulas covered by automated boundary tests.

Results are estimates for general information, not personalised tax, legal or financial advice. See our methodology and disclaimer.

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Corporation Tax

19%, marginal relief and 25% main rate.

Self-employed Tax

Income Tax and Class 4 NI on trading profit.

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 tax-free Dividend Allowance.

Is the Dividend Allowance a deduction?

No, it is a 0% band. The first £500 of dividends is taxed at 0% but still counts towards your total income, which can push later dividends into a higher band.

Do Scottish taxpayers pay different dividend tax?

No. Dividend rates are set by the UK Government and apply in Scotland too, although Scottish earnings determine which UK band dividends fall into.

How do company directors pay dividend tax?

Through Self Assessment, by 31 January after the tax year. Dividends are not subject to National Insurance, which is why many directors take a small salary plus dividends.

Are dividends in an ISA taxed?

No. Dividends from investments held in an ISA or pension are tax-free and do not use your allowance — leave them out.