Dividend tax calculator 2026/27
If you own shares or run your own limited company, dividends are taxed separately from your salary, at their own rates. These are the rates for the tax year from 6 April 2026 to 5 April 2027.
Enter your dividends and your other taxable income for the year to see how much dividend tax you owe.
How it's calculated
- Your Personal Allowance of £12,570 is used by your other income first. Any part left over covers dividends.
- The first £500 of dividends is tax free. This is the Dividend Allowance, and it still uses up part of your band.
- The rest is taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% above £125,140 of taxable income.
- Dividends are added on top of your other income, so they are taxed at the highest band they reach.
An example
HMRC's example: with £29,570 of wages and £3,000 of dividends, £500 is covered by the allowance and £2,500 is taxed at 10.75%. The dividend tax is £268.75.
Frequently asked questions
Do I need to tell HMRC about my dividends?
Not if they are covered by your unused Personal Allowance and the Dividend Allowance. Above that you need to report them to HMRC, either through your tax code or a Self Assessment tax return.
Are dividends in an ISA taxed?
No. Dividends from shares held in an ISA are tax free and do not use your Dividend Allowance.
Do Scottish taxpayers pay different dividend tax?
No. Dividend tax rates and bands are the same across the UK, even if your salary is taxed at Scottish rates.
Key terms
- Dividend
- A payment a company makes to its shareholders out of its profits.
- Dividend Allowance
- The amount of dividends you can receive each year without paying tax.
Up-to-date official data
Data checked against the official source on .
We check the official sources automatically, every day.
- HMRCIncome Tax rates and Personal Allowances
- HMRCRates and thresholds for employers 2026 to 2027
- HMRCTax on dividends