United Kingdom · Updated for 2026/27
Dividend tax calculator 2026/27
With a £12,570 salary and £50,000 of dividends in 2026/27, you pay £8,396.25 of dividend tax: nothing on the first £500, 10.75% on £37,200 and 35.75% on the last £12,300.
Type your salary (or other income, such as self-employed profit) and your dividends for the year.
£12,570 salary and £50,000 of dividends · England, Wales or Northern Ireland
£8,396.25 dividend tax
Tax on the salary: £0.00 · after all tax and NI: £54,173.75
| Dividends | Tax | |
|---|---|---|
| Dividend allowance (0%) | £500.00 | £0.00 |
| Basic rate, 10.75% | £37,200.00 | £3,999.00 |
| Higher rate, 35.75% | £12,300.00 | £4,397.25 |
The Personal Allowance (£12,570.00 at this income) goes against your salary first, then your dividends. The dividend allowance is taxed at 0% but still uses up your basic-rate band.
How are dividends taxed in 2026/27?
Your dividends are added on top of your other income. Your Personal Allowance (£12,570) covers your salary first, then any dividends. The next £500 of dividends is taxed at 0%: that is the dividend allowance. Every pound after that is taxed at the dividend rate of the band it falls in: 10.75% up to the top of the basic-rate band, 35.75% up to £125,140 of taxable income, and 39.35% above.
Why does my salary change the tax on my dividends?
Because the salary fills the bands first. With a £30,000 salary, only the first part of £40,000 of dividends fits in the basic-rate band (£37,700 of taxable income in all); the rest is taxed at the higher rate. The tax is £9,178.75: nothing on the first £500, 10.75% on £19,770 and 35.75% on the last £19,730. The dividend allowance doesn’t make the band any bigger: the £500 taxed at 0% still uses up £500 of it.
How do I pay dividend tax?
Nothing is taken off a dividend when it is paid, so you tell HMRC. If you already send a Self Assessment tax return, add your dividends there and the tax is due by 31 January after the tax year. If you don’t, HMRC may collect a small amount through your tax code; larger amounts need a tax return. GOV.UK explains how on its tax on dividends page.
Running your own company? The contractor calculator works out the Corporation Tax first and the dividends you can pay from what is left.
What else can I work out?
- Contractor calculator Your limited company in full: Corporation Tax, salary, dividends and profit kept.
- IR35 calculator Inside an umbrella or outside through your own company: your take-home on the same day rate.
- Self employed tax calculator Income tax and Class 4 NI on your profit, and what to pay in January and July.
- Salary calculator Take-home pay on any salary, with tax codes, Scotland, pensions and student loans.
Every UK tool on one page: salary and tax tools. How the rules work: UK pay and tax guides.
Questions about dividend tax
What is the dividend allowance for 2026/27?
£500. The first £500 of dividends above your Personal Allowance is taxed at 0%.
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. The basic and higher rates went up in April 2026.
Do I pay National Insurance on dividends?
No. Dividends carry income tax only. That is one reason company directors often take a small salary and the rest as dividends.
Is dividend tax different in Scotland?
No. Scottish income tax rates apply to your salary, but dividends are taxed at the UK’s dividend rates, in the UK’s bands, wherever you live.
Are dividends in an ISA or a pension taxed?
No. Dividends paid inside an ISA or a pension are tax-free, and they don’t use up your dividend allowance. Leave them out of this calculator.