Dividend tax calculator
Work out the tax on dividends from shares or your own company for 2026/27, based on your other income.
Your dividend tax
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How dividend tax works
The £500 allowance
You can receive £500 of dividends a year tax-free. This is called the Dividend Allowance. It is not extra income tax allowance, as it still counts towards your tax band.
The rates
For 2026/27 the dividend rates are 10.75% for basic-rate taxpayers, 35.75% for higher-rate and 39.35% for additional-rate. Your dividends are treated as the top slice of your income, so they are taxed after your salary and other income.
Personal Allowance first
If your other income is below the £12,570 Personal Allowance, the unused part also covers dividends. For example, if you take no salary, the first £12,570 of dividends is tax-free, and the next £500 is covered by the dividend allowance.
Company directors
Many directors pay themselves a small salary and take the rest as dividends. The company has already paid Corporation Tax on its profits, so dividends are paid from taxed money. Check the best mix with an accountant. See also the self-employed tax calculator if you are a sole trader.
Paying the tax
If you have dividend income of more than £10,000, or need to report it, you complete a Self Assessment return. For smaller amounts HMRC may collect it through your tax code.
What this calculator assumes
- England, Wales and Northern Ireland. Scottish bands differ for other income, but dividends use the UK-wide rates.
- Dividends are the only other income. Interest, rental income and gains are not included.
- The £500 allowance is used before the dividends are taxed.
- No dividends are held in an ISA or pension, where they are tax-free.
Questions people ask
How much tax do I pay on £10,000 of dividends?
If you also earn £30,000, the first £500 is tax-free, and the other £9,500 is taxed at 10.75%, a bill of about £1,021.
How are dividends taxed with a £60,000 salary?
You are a higher-rate taxpayer, so dividends above the £500 allowance are taxed at 35.75%.
Can I avoid dividend tax?
Holding shares in an ISA or pension means dividends are tax-free. Spouses can also split ownership of shares to use two allowances.
Is what I type stored or shared?
No. The calculation runs in your browser and nothing you enter is sent to us. Our privacy page has the details.
Is this financial advice?
No. It gives an estimate for information only. For advice about your own situation, speak to a regulated adviser.