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Dividend Tax Calculator

Enter your dividends and your salary or pension to see the tax on your dividends after the £500 allowance, which band they fall in, and when to pay HMRC.

Tax return due 31 January 2027

£

For the tax year, outside ISAs and pensions

£

For the tax year, before tax

More options· Savings interest
£

For the tax year, outside ISAs

Tax on your dividends for 2025/26

£2,581

8.6% of your £30,000 dividends

You keep
£27,419
Tax on your next £100
£8.75
Where your dividends fall
  • Tax-free£500
  • Basic rate£29,500

Due by 31 January 2027 through Self Assessment: £3,872 including your first payment on account

What this means

Dividends are taxed after your salary, in whichever band they land. The first £500 is tax-free, but it still uses up part of the band. Your next £100 of dividends would cost £8.75 in tax.

There’s no National Insurance on dividends. That’s why many company directors pay themselves a salary up to the Personal Allowance and take the rest as dividends.

Next step

Tax on your dividends

BandDividendsRateTax
Dividend allowance£5000%£0.00
Basic rate£29,5008.75%£2,581.25
Total£30,0008.6%£2,581.25

When to pay

Dividends over £10,000 need a Self Assessment tax return. If you don’t already send one, register by 5 October 2026, or straight away if that’s passed.

31 January 20272025/26 bill £2,581.25 + first payment on account £1,290.63£3,871.88
31 July 2027Second payment on account£1,290.63

Payments on account are advance payments towards next year’s bill, each half of this year’s. They don’t apply when the tax is collected through your tax code.

Assumptions in this estimate
  • Dividends are outside ISAs and pensions. Dividends from shares in an ISA are tax-free and don’t count here.
  • Your salary or pension is taxed through PAYE with the standard 1257L tax code. Dividend tax uses the same bands everywhere in the UK; in Scotland, your salary is taxed at Scottish rates first.
  • For company directors: dividends are paid from profits after Corporation Tax, which isn’t included here.
  • Pension contributions and Gift Aid donations, which make your basic-rate band bigger, aren’t included.
  • Payments on account for next year are based on this year’s bill. If you expect smaller dividends, you can ask HMRC to reduce them.
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How the calculator works

  1. Your salary or pension is taxed first, after your £12,570 Personal Allowance. Above £100,000 of total income, dividends included, the allowance shrinks by £1 for every £2.
  2. Savings interest comes next, after the Personal Savings Allowance.
  3. Dividends sit on top. Any Personal Allowance your salary didn’t use covers them first, then the £500 dividend allowance, and the rest is taxed at the rate for the band it lands in.
  4. When to pay: through your tax code or Self Assessment, with any payments on account.

Dividend tax rates

2025/26 2026/27
Dividend allowance £500 £500
Basic rate 8.75% 10.75%
Higher rate 33.75% 35.75%
Additional rate 39.35% 39.35%

The bands are counted on your total income: the basic rate runs up to £50,270 and the higher rate up to £125,140. Scotland has its own rates on salaries, but dividends use these bands everywhere in the UK.

Examples

For 2026/27, in England:

Salary Dividends Tax on dividends How
£12,570 £30,000 £3,171.25 £29,500 at 10.75%
£29,570 £3,000 £268.75 £2,500 at 10.75%
£45,000 £10,000 £2,203.75 £4,770 at 10.75%, then £4,730 at 35.75%

In the last example the salary leaves room for only £5,270 of income in the basic-rate band. The £500 allowance uses some of it, and the rest of the dividends are taxed at the higher rate.

Payments on account

A director with a £12,570 salary and £30,000 of dividends in 2025/26 owes £2,581.25. No tax was taken through PAYE, so on 31 January 2027 they pay that plus a first payment on account of £1,290.63 towards 2026/27: £3,871.88. A second £1,290.63 is due on 31 July 2027. Read more about payments on account.

Choosing the tax year

Pick 2025/26 if you’re filing your tax return by 31 January 2027: it covers 6 April 2025 to 5 April 2026. Pick 2026/27 to plan the dividends you take in the tax year you’re in now.

What this calculator doesn’t include

Corporation Tax on your company’s profits, pension contributions and Gift Aid (which make your basic-rate band bigger), dividends from overseas and the tax already paid on them, and the Marriage Allowance.

Learn more

If you’re self-employed as well, use the sole trader tax calculator. See how the Autumn Budget changes your tax with the Budget calculator, and read where to invest to keep more of your dividends tax-free in an ISA.

Last updated

Frequently asked questions

What is the dividend allowance?

The first £500 of dividends you get each tax year is tax-free, in 2025/26 and 2026/27. It still counts towards your income, so it uses up part of your basic-rate or higher-rate band. Dividends from shares in an ISA are tax-free and don't count towards it.

What are the dividend tax rates for 2026/27?

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. In 2025/26 they were 8.75%, 33.75% and 39.35%. The rates and bands are the same across the UK, including Scotland.

Do I pay National Insurance on dividends?

No. Dividends only pay Income Tax. That's why many company directors pay themselves a salary up to the £12,570 Personal Allowance and take the rest of their income as dividends.

Do I need to fill in a tax return for my dividends?

If your dividends are over £10,000 in the tax year, yes. If you don't already send a tax return, register for Self Assessment by 5 October after the tax year ends. If they're between the allowance and £10,000, you can tell HMRC by 5 October instead and they'll take the tax from your wages or pension through your tax code. If you already send a tax return, put your dividends on it.

How much can a director take in dividends at the basic rate?

With a £12,570 salary, up to £37,700 of dividends stays in the basic-rate band, because the higher rate starts at £50,270 of total income. In 2026/27 the tax on £37,700 of dividends is £3,999, at 10.75% on everything above the £500 allowance.

When do I pay tax on my dividends?

By 31 January after the tax year ends, so 31 January 2027 for 2025/26. If your bill is £1,000 or more and less than 80% of your tax is taken through PAYE, you also pay half of it again in advance on 31 January and 31 July, as payments on account towards next year.