Dividend Tax Calculator

Understand the tax on your dividends.

Estimate how much tax you may pay on dividend income after considering your other taxable income, dividend allowance and applicable dividend tax bands.

Calculate Dividend Tax → Understand Dividend Tax
Dividend income 2026/27

Your dividend income can be taxed differently from your salary.

The rate you pay can depend on where your total taxable income falls across the relevant tax bands.

Illustrative dividend income £10,000 Before dividend tax
Dividend allowance £500
Basic dividend rate 10.75%
Dividend Tax Calculator

See how your dividend income could be taxed.

Enter your annual non-dividend income and dividend income to get an illustrative estimate based on the 2026/27 dividend tax rates.

Enter your income

Use annual figures before tax.

£
£
This is an educational estimate rather than tax advice. Your actual liability may depend on your full tax position, allowances, reliefs and the type of income you receive.
Estimated result

Dividend tax estimate

2026/27
Estimated dividend tax £1,019 Based on the information entered
Total dividend income £10,000
Dividend allowance £500
Taxable dividends £9,500
Effective dividend rate 10.73%
Estimated tax by dividend rate
Basic rate
£0
Higher rate
£0
Additional rate
£0
Dividends from shares held in an ISA are not subject to dividend tax. This calculator assumes the standard £12,570 Personal Allowance where applicable and is intended as an estimate.
What Is Dividend Tax?

Dividends can be taxed differently from your salary.

Dividend tax is the Income Tax that may apply to dividend income received from shares or investments. The amount you pay depends partly on your overall taxable income and which tax band your dividends fall into.

You do not normally pay dividend tax on dividend income within your Personal Allowance, and a separate dividend allowance is available each tax year.

Why Use The Calculator?

Make dividend income easier to understand.

Dividend tax can be confusing because the rate is influenced by your other taxable income. A dividend that looks small on its own can fall into a different tax band once your salary, pension or other taxable income is included.

An estimate can help you plan ahead, understand potential tax costs and decide what information you may need when reviewing your tax position.

2026/27 Dividend Rates

The dividend rate depends on your tax band.

For the 2026/27 tax year, dividends above the dividend allowance are taxed at different rates depending on the band in which the income falls.

BASIC
10.75%

Basic Rate

Dividends falling within the basic-rate band are taxed at 10.75% after applicable allowances.

HIGHER
35.75%

Higher Rate

Dividends falling within the higher-rate band are taxed at 35.75% after applicable allowances.

ADDIT.
39.35%

Additional Rate

Dividends falling within the additional-rate band are taxed at 39.35% after applicable allowances.

Dividend allowance
£500 Dividend allowance for 2026/27
How Dividend Tax Works

Start with your total income, not just the dividend.

The tax treatment of dividends depends on how your dividend income interacts with your wider taxable income. That is why entering your salary or other taxable income can make the estimate much more useful.

01 Add your salary, pension and other relevant taxable income.
02 Add the dividends you expect to receive during the tax year.
03 Account for the £500 dividend allowance for 2026/27.
04 Apply the relevant dividend tax rate to the taxable portion.
Explore More

Continue exploring your tax and money options.

Use related calculators and guides to build a clearer picture of your wider personal finance position.

01

Income Tax Calculator

Estimate your Income Tax based on your annual income and understand how tax bands affect your earnings.

Calculate Income Tax →
02

Salary Calculator

Estimate your take-home pay after Income Tax and National Insurance deductions.

Calculate Take-Home Pay →
03

Capital Gains Tax Calculator

Explore a potential Capital Gains Tax liability when selling assets or investments that have increased in value.

Calculate Capital Gains →
04

Tax Calculator

Explore broader tax calculations and understand how different types of income can affect your overall position.

Explore Tax Calculator →
05

Income Tax Guide

Learn more about Income Tax bands, allowances and how taxable income is generally calculated.

Read Income Tax Guide →
06

Dividend Tax Guide

Understand dividend allowances, tax rates and the key factors that can affect tax on dividend income.

Read Dividend Tax Guide →
Latest Insights

Tax, investing and money insights.

Explore the latest GrowthSmartly articles covering taxes, investing, savings, mortgages and everyday financial decisions.

Loading latest articles...
Dividend Tax Questions
£500 Dividend allowance for 2026/27
Frequently Asked Questions

Dividend Tax Calculator FAQs

Clear answers to common questions about dividend income and tax.

Dividend tax is Income Tax that can apply to dividend income above the applicable allowances. The rate depends on the tax band in which the dividend income falls.
The dividend allowance for the 2026/27 tax year is £500. Dividend income above the allowance can be taxable, depending on your overall tax position.
For 2026/27, the dividend tax rates are 10.75% at the basic rate, 35.75% at the higher rate and 39.35% at the additional rate.
Yes. Your dividend income is considered alongside your other taxable income when determining which dividend tax rates can apply. This is why your salary or other income matters when estimating dividend tax.
Dividends received from shares held in an ISA are not subject to dividend tax. The ISA rules and account conditions still apply.
Some dividend income may fall within your Personal Allowance or dividend allowance. Whether you actually owe tax depends on your full income and circumstances.
No. It is designed as an educational estimate. Your actual tax liability may be affected by allowances, reliefs, pension contributions, other income, residency and other individual circumstances.
Depending on the amount of dividend income and your wider tax position, you may need to report it to HMRC. Check the latest HMRC guidance for your circumstances.

Make your dividend income easier to plan.

Estimate your potential dividend tax and explore more GrowthSmartly calculators and financial guides.

Calculate Dividend Tax → Explore Income Tax Calculator
Scroll to Top