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Free UK Tax Tool

Dividend Tax Calculator 2026/27

Calculate how much tax you owe on dividends from your limited company. Enter your salary and dividend income to see your full tax liability for 2026/27.

Updated April 2026🇬🇧 UK-specificFree Tool

About This Dividend Tax Calculator

This calculator estimates the Income Tax payable on dividend income for UK taxpayers. It applies the correct dividend tax rates across all bands, taking into account your other income and the £500 dividend allowance for 2026/27.

Note: Based on 2026/27 HMRC rates. The dividend allowance is £500. Dividends are taxed on top of other income, so your other income determines which tax band your dividends fall into.

How to Use This Calculator

  1. 1Enter your total non-dividend income (salary, self-employment, rental, etc.).
  2. 2Enter the total dividend income received in the tax year.
  3. 3The calculator applies the £500 dividend allowance and the correct dividend tax rates.
  4. 4See tax payable by band: Basic (8.75%), Higher (33.75%), and Additional (39.35%).

Your Income 2026/27

£12,570.00
£0£150k
Personal allowance: £12,570 | Tip: directors often take £12,570 salary
£40,000.00
£0£200k
Dividend allowance: £500 (tax-free)

Based on 2026/27 HMRC rates. Does not include National Insurance, pension contributions, or Corporation Tax. Always consult a qualified accountant. Last updated: April 2026.

Income Breakdown

Net Income 93%Dividend Tax 7%
  • Net Income
  • Dividend Tax

Dividend Tax Band Breakdown

BandDividend AmountRateTax
Dividend Allowance£500.000%£0.00
Basic Rate£37,700.008.75%£3,298.75
Higher Rate£1,800.0033.75%£607.50
Additional Rate£0.0039.35%£0.00
Total Dividend Tax£3,906.25

UK Dividend Tax Rates 2026/27

BandTaxable IncomeDividend Rate
Dividend AllowanceFirst £5000%
Basic Rate£12,571 – £50,2708.75%
Higher Rate£50,271 – £125,14033.75%
Additional RateOver £125,14039.35%