Dividend tax calculator
Enter your salary or other income and the dividends you plan to take. The calculator applies the personal allowance, the dividend allowance and the 2026/27 dividend rates, and shows what you keep.
Dividend tax for 2026/27
£4,821
£500 covered by the dividend allowance.
- Taxable dividends
- £40,000
- Basic rate at 10.75%on £37,700
- £3,999
- Higher rate at 35.75%on £2,300
- £822
- Dividend tax
- £4,821
Whole picture
- Personal allowance
- £12,570
- Income tax on salary
- £0
- Employee National Insurance
- £0
- Dividend tax
- £4,821
- Take-home paySalary plus dividends, less all personal tax
- £47,749
Figures used, 2026/27
- Personal allowance £12,570, tapered above £100,000
- Dividend allowance £500
- Dividend rates 10.75%, 35.75% and 39.35%
- Basic rate band to £50,270, higher rate to £125,140
- Employee NI 8% above £12,570, 2% above £50,270
England, Wales and Northern Ireland. Rates reviewed . An estimate, not advice: your own position may differ.
How the calculator works
Dividends are taxed after your other income. The calculator sets the 12,570 pound personal allowance against salary first, then against dividends if any remains. It then applies the 500 pound dividend allowance, which is tax-free but still uses up part of your basic rate band.
Dividend tax rates for 2026/27 are 10.75% in the basic rate band (total income up to 50,270 pounds), 35.75% in the higher rate band (up to 125,140 pounds) and 39.35% above that. These are two percentage points higher than the basic and higher rates that applied in 2025/26, following the Autumn Budget 2025.
Above 100,000 pounds of total income the personal allowance is reduced by 1 pound for every 2 pounds earned, which pushes more of your dividends into tax. The calculator reflects this taper automatically.
Dividends do not attract National Insurance, which is why many director-shareholders take a small salary and the rest as dividends. Dividends can only be paid from profits that have already borne Corporation Tax, and must be declared on a Self Assessment return if they exceed the allowance.
Frequently asked questions
10.75% for basic rate taxpayers, 35.75% for higher rate taxpayers and 39.35% for additional rate taxpayers. The first 500 pounds of dividends is covered by the dividend allowance and is tax-free.
Yes. The dividend allowance has been 500 pounds since April 2024. It is not an extra tax band: dividends within the allowance still count towards your total income and use up band space.
No. Dividends are not earnings, so neither employee nor employer National Insurance is due. That is the main reason a salary and dividend mix usually costs less in tax than salary alone.
Through Self Assessment. If your dividend income is above the allowance you will normally need to file a return by 31 January after the end of the tax year and pay any tax by the same date. Dividends under 10,000 pounds can sometimes be dealt with through your tax code instead.
Dividend tax rates and bands are set for the whole UK, so the dividend figures apply in Scotland too. The income tax on your salary, however, uses Scottish bands and rates, which this calculator does not model.
Guides on this topic
All articles
Running a limited company
Dividend Payments: A Comprehensive 2026 UK Guide to Paying Yourself from a Limited Company
Dividends from a Limited Company UK represent one of the most tax-efficient methods to remunerate yourself while retaining compliance.
Tax
Navigating the Intricacies of Dividend Taxation in the UK
This guide delves into Dividend Taxation UK, offering insights into current rates, allowances, and strategic tax planning approaches.
Running a limited company
Most Tax-Efficient Way to Pay Yourself as a Director in 2026/27 (UK Guide)
Structuring your income in the most tax-efficient way can help reduce your tax liability and maximise take-home pay.
More calculators
- VAT calculatorAdd VAT to a net price, or strip it out of a gross figure.
- Salary vs dividend calculatorFind the most tax-efficient mix of salary and dividends from your company's profit.
- Corporation Tax calculatorCorporation Tax on your profit, including marginal relief.
- Self-employed tax calculatorIncome tax and National Insurance on sole trader profits.
- Take-home pay calculatorSalary after tax, National Insurance, student loan and pension.
- Employer NI calculatorEmployer's National Insurance and the true cost of a hire.
- Capital Gains Tax calculatorTax on selling property, shares or crypto, at 18% and 24%.
- Limited company tax calculatorFrom turnover to take-home: Corporation Tax, NI and dividend tax in one view.
- Sole trader vs limited company calculatorWhen does going limited actually save you money? Find your break-even point.
Let’s talk aboutyour business.
Tell us where you are, what you need help with and how you would like to work. We’ll start with a conversation.
124 City Road, London EC1V 2NX