Tax on UK dividends for 2026-27: the £500 allowance and the new 10.75% and 35.75% rates
Estimates only, not financial advice. What you type stays on your device. Checked against sources on 17 Oct 2026.In the 2026-27 tax year UK dividends above the £500 dividend allowance are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. Dividends sit on top of other income, so £3,000 of dividends on £29,570 of wages costs £268.75.
Cash dividends received from 6 April 2026 to 5 April 2027, outside an ISA or pension.
Salary, pension, rental profit or self-employed profit before tax. Leave out savings interest.
£268.75
You keep £2,731.25 of £3,000.00 in dividends.The £500 dividend allowance is taxed at 0% but still uses up part of your band, so it can push other dividends into a higher band.
Tell HMRC if your dividends exceed your unused Personal Allowance and the £500 allowance.
Not included: savings interest, Scottish rates on wages, Marriage and Blind Person’s Allowance, pension and Gift Aid relief.
GOV.UK dividend and income tax rates for 6 April 2026 to 5 April 2027, checked 17 Oct 2026. An estimate.
| Total income | £32,570.00 |
| Personal Allowance | £12,570.00 |
| Other income after the allowance | £17,000.00 |
| Income tax on other income (20%, 40%, 45%) | £3,400.00 |
| Dividends inside the Personal Allowance | £0.00 |
| Slice | Amount | Rate | Tax |
|---|---|---|---|
| Dividend allowance | £500.00 | 0% | £0.00 |
| Basic rate | £2,500.00 | 10.75% | £268.75 |
| Dividend tax | £268.75 | ||
| Total income tax | £3,668.75 | ||
2026-27 · Rates and rules read from the sources listed on this page (the earliest on 17 Oct 2026); they may have changed since.
Type your dividends for the tax year.
Type your other income: salary, pension, rent or profit, before tax.
Read the dividend tax and the band each slice of dividends falls in.
Check the whole income tax bill, wages included, in the working tab.
This calculator works out the income tax on dividends for the tax year from 6 April 2026 to 5 April 2027, from HMRC's pages on GOV.UK: tax on dividends, and Income Tax rates and Personal Allowances.
The order. Your other income (salary, pension, rent, trading profit) uses the £12,570 Personal Allowance first. Any allowance left over covers dividends. Above £100,000 of total income the allowance falls by £1 for every £2, and it is gone at £125,140.
The dividend allowance. The first £500 of taxable dividends is taxed at 0%, but it still fills part of the band it sits in.
The rates. Dividends sit on top of the other income in the bands: basic rate up to £37,700 of taxable income (£50,270 with the allowance), higher rate up to £125,140, additional rate above.
| Band | Dividend rate | Rate on other income |
|---|---|---|
| Basic | 10.75% | 20% |
| Higher | 35.75% | 40% |
| Additional | 39.35% | 45% |
GOV.UK's example. £3,000 of dividends and £29,570 of wages: 20% on £17,000 of wages, nothing on £500 of dividends and 10.75% on £2,500. The dividend tax is £268.75.
A director's pay. With a £12,570 salary and £40,000 of dividends the tax is £4,821.25: 10.75% on £37,200 and 35.75% on £2,300.
Not included. Savings interest and the starting rate for savings, Scottish income tax rates on wages, Marriage and Blind Person's Allowance, and relief for pension contributions or Gift Aid. For pay alone, use the UK Income Tax Calculator; for selling shares, the UK Capital Gains Tax Calculator.
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Dividends above the £500 dividend allowance are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, from 6 April 2026. Dividends inside your unused £12,570 Personal Allowance are not taxed at all.
Every individual has a £500 dividend allowance a year. Dividends within it are taxed at 0%, but they still count towards your income and use up part of the band they fall in, so they can push other dividends into the higher rate band.
GOV.UK lists 10.75% for the basic rate, 35.75% for the higher rate and 39.35% for the additional rate in its table for 6 April 2026 to 5 April 2027. Your other income decides which of the three rates each pound of dividends pays.
Add your dividends to your other income. Salary and pension use the Personal Allowance and the bands first, and dividends sit on top. With £29,570 of wages and £3,000 of dividends the total is £32,570, all in the basic rate band, so the dividend tax is £268.75.
No. GOV.UK says you do not pay tax on dividends from shares in an ISA, so leave them out of this calculator. Only dividends from shares held directly or in a general investment account count towards the £500 allowance and the bands.
GOV.UK says to report dividends when they are more than both your unused Personal Allowance and the £500 dividend allowance. A person with a £40,000 salary and £800 of dividends would report £300, which costs £32.25 at the 10.75% basic rate.
Rates and rules change; check the source before you rely on a figure.
Still stuck? Ask about UK Dividend Tax Calculator 2026-27 and anybody who knows can answer. No account needed.
Same job, other tools: SDLT Calculator 2026: Stamp Duty Land Tax – Stamp Duty Land Tax for England and Northern Ireland, with every band shown · CGT Calculator UK 2026-27 – Capital Gains Tax for UK taxpayers: allowance, losses and the 18% and 24% rates · Capital Gains Tax on Property UK – CGT on selling a second home or buy-to-let in the UK, at 18% and 24% · Land Transaction Tax Calculator (Wales) – Welsh Land Transaction Tax at the main and higher residential rates · Scotland Income Tax Calculator – Scottish income tax for 2026-27 across all six bands, with National Insurance · Universal Credit Calculator: How Much Will I Get? – How much Universal Credit you could get a month, and how your wages change it.
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