Dividend Tax Calculator
Calculate the tax on your dividends with our free UK dividend tax calculator. Enter your salary, your dividends, and any other income, pick the tax year, and see your dividend tax and what you keep.
Dividend tax to pay
£3,171.25
- Your dividend profits
- £30,000.00
- Dividends after tax
- £26,828.75
How dividend tax works
Dividends are the top slice of your income. To work out the rate, your salary and other income are counted first, then your dividends sit on top. So a small salary plus large dividends can push some of those dividends into a higher band. You also get a £500 dividend allowance, taxed at 0%, on top of your £12,570 personal allowance.
For 2025/26, dividends above the allowance are taxed at 8.75% in the basic band, 33.75% in the higher band, and 39.35% in the additional band. From 6 April 2026, the basic and higher rates each rose by 2 points, so for 2026/27 they're 10.75%, 35.75%, and 39.35%. The £500 allowance is unchanged.
The allowance is a 0% band, not a deduction: it doesn't reduce your other income, and it still uses up part of whichever band it falls in. Dividends in an ISA are tax-free and aren't counted here. This is general information, not tax advice; check gov.uk or an accountant for your own situation.
Questions & Answers
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