Dividend Tax Calculator UK 2026/27

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Dividend Tax Rates 2026/27

Band	Rate
Dividend allowance (per year)	£500 @ 0%
Basic rate	10.75%
Higher rate	35.75%
Additional rate	39.35%

Dividends are taxed after salary/other income fills your Personal Allowance and lower bands — so your salary level determines which dividend band you start in. Common for limited company directors who pay themselves a low salary plus dividends.

Get Your Books & Tax Handled Properly

This calculator gives an estimate — but self-employed and dividend income both come with Self Assessment obligations, allowable expenses, and filing deadlines that are easy to get wrong without support.

New to self-employment or a limited company: get set up correctly from day one — VAT registration, expense tracking, Self Assessment.
Mixed salary + dividend income: an accountant can model the most tax-efficient salary/dividend split for a director-shareholder.
Approaching a filing deadline: avoid late-filing penalties with a fixed-fee online accountant.
Growing side income: know exactly when you cross into needing to register for Self Assessment.

Online accountants like Crunch, Osome and Tide Accounting handle Self Assessment and limited company filings at a fixed monthly fee, built for freelancers and small companies.

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Transparency & Methodology

Dividend Tax Calculator

Independent, Open-Source Estimator

An independent calculator applying published HMRC/gov.scot/DWP rates deterministically — no AI estimate, no official affiliation.

Methodology & Sources

Figures are public HMRC/gov.scot/DWP rates. For your exact position, use gov.uk/estimate-income-tax.

Not Tax or Legal Advice

Information only. Consult the Chartered Institute of Taxation or an adviser via the FCA Register.

Open Source

Formulas are public. Inspect on GitHub.

Frequently Asked Questions

What is the dividend allowance for 2026/27?

The first £500 of dividend income each tax year is tax-free, regardless of your other income.

How are dividends taxed if I also have a salary?

Dividends are treated as the top slice of your income — your salary and other income use up the Personal Allowance and lower tax bands first, and dividends are taxed at whichever band they fall into above that.

Why do company directors take a low salary plus dividends?

Dividends aren't subject to National Insurance, so a low salary (often around the Personal Allowance) plus dividends is typically more tax-efficient than an equivalent full salary — subject to Corporation Tax already paid on company profits.

What are the dividend tax rates for 2026/27?

10.75% basic rate, 35.75% higher rate, 39.35% additional rate — each roughly 8.75 percentage points above the equivalent Income Tax band.