UK Dividend Tax Calculator
Apply the £500 dividend allowance and 2026/27 dividend rates. Enter values after allocating Personal Allowance; this is not a salary-and-dividend optimisation tool.
Rule year: 2026/27 · GBP · Sources checked
Estimated tax on entered dividends
Ordinary UK individual dividend rates and unextended bands. Personal Allowance, savings-income ordering and eligible adjustments are already resolved in the inputs. No ISA dividends, company corporation tax, salary optimisation, trust rates, special distributions or total Income Tax reconstruction.
Dividends taxed within UK bands
Other taxable income and zero-rate dividends occupy band space. Personal Allowance must already be allocated before entering these values.
| Dividend rate | Taxed dividends | Tax |
|---|---|---|
| 10.75% | £2,500.00 | £268.75 |
| 35.75% | £0.00 | £0.00 |
| 39.35% | £0.00 | £0.00 |
For informational purposes only. This estimate is not financial advice, a tax return, a payroll calculation or a lender decision. See the supported circumstances and exclusions below.
How this calculator works
Dividends sit above other taxable income in the UK band calculation. The £500 dividend allowance is a zero-rate slice, so it still occupies tax-band space. In 2026/27 the ordinary dividend rate is 10.75%, the upper rate 35.75% and the additional rate 39.35%. Enter other taxable income and dividends after Personal Allowance has been correctly allocated. This avoids guessing allowance allocation, savings-income ordering or pension/Gift Aid band extensions. The displayed table shows only the dividend slices taxed at each rate.
Formula and rules
Dividend tax = dividend-rate band tax(other taxable income + entered dividends) − dividend-rate band tax(other taxable income + dividend allowance used).
Assumptions and limitations
Ordinary UK individual dividend rates and unextended bands. Personal Allowance, savings-income ordering and eligible adjustments are already resolved in the inputs. No ISA dividends, company corporation tax, salary optimisation, trust rates, special distributions or total Income Tax reconstruction.
Worked example
After allocating Personal Allowance, £17,000 other taxable income and £3,000 dividends leave all dividends in the ordinary band. The first £500 is zero-rated and £2,500 at 10.75% gives £268.75 dividend tax.
- Estimated tax on entered dividends
- £268.75
- Dividend allowance used
- £500.00
- Dividends above dividend allowance
- £2,500.00
- Effective rate on entered dividends
- 8.96%
Official sources and review
Reviewed against the sources below on 2026-10-06. Rates are held in versioned rule modules. Versioned rules, official source review and year-specific calculation tests.
- GOV.UK: dividend taxation ↗
2026/27 dividend allowance £500 and rates 10.75%, 35.75%, 39.35%; zero-rate dividends occupy bands.
- GOV.UK: Income Tax rates and Personal Allowances ↗
2026/27 allowance £12,570, taper above £100,000, and income bands.
Common questions
Why enter taxable income rather than salary?
Personal Allowance allocation and different income types can change the band space. Enter the already-established taxable amounts for this dividend-only calculation.
Does the dividend allowance create extra basic-rate space?
No. The zero-rated allowance uses band space even though no dividend tax is charged on that slice.
Are 2025/26 dividend rates used?
No. This version uses 2026/27 rates: 10.75%, 35.75% and 39.35%. Earlier rates can give the wrong current-year estimate.