Calculate∑ What your result means
Dividend income has its own £500 tax-free allowance and its own tax rates, which apply after your other income has used up your Personal Allowance and basic-rate band.
Dividend Tax Calculator
Estimate the tax due on dividend income above the tax-free dividend allowance.
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Verified for 2026-27Methodology 2026-27.1 · reviewed 2026-08-08 · review by 2027-03-01
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Change other annual income (salary etc.) to see the effect on your result.
Understand your result
Clear context for the values above.
Other annual income
Other annual income is included so you can interpret this estimate and make a better-informed comparison.
Annual dividend income
Annual dividend income is included so you can interpret this estimate and make a better-informed comparison.
Estimated dividend tax
Estimated dividend tax is included so you can interpret this estimate and make a better-informed comparison.
Taxable dividend amount
Taxable dividend amount is included so you can interpret this estimate and make a better-informed comparison.
How to use this calculator
- 1Enter your current other annual income (salary etc.), annual dividend income.
- 2Review the headline estimated dividend tax and the supporting figures beside it.
- 3Change one input at a time to see which assumption has the biggest effect.
- 4Confirm current UK rates and thresholds with an official source before acting.
Explore this calculator
What your result means →The headline estimated dividend tax is based on the inputs currently shown above.Key terms explained →Review the assumptions, applicable rules, timing and real-world fees before making a decision.How to use this calculator →Enter your figures, review the live result, compare scenarios, then save or print your estimate.The calculation formula →The calculation follows the standard relationship between the displayed inputs. Results update whenever an input changes.Worked example →Using the current values produces £806.Assumptions and limitations →Review the assumptions, applicable rules, timing and real-world fees before making a decision.Costs or factors not included →Review the assumptions, applicable rules, timing and real-world fees before making a decision.Frequently asked questions →How accurate is this estimate? What should I check before relying on it? Can I save or share the result?
▦ How this calculator works
Unused Personal Allowance (if your other income is below £12,570) shelters dividend income first. The first £500 of what's left is tax-free. The remaining taxable dividend is stacked on top of your other income and taxed in whichever bands it falls into: 10.75% in the basic-rate band, 35.75% in the higher-rate band, and 39.35% in the additional-rate band.
◇ Assumptions and what's not included
This assumes your other income has already used your Personal Allowance in the way modelled, and doesn't account for the Personal Allowance taper above £100,000 or dividends held inside an ISA or pension, which are tax-free. Verify the dividend rates above against the current HMRC Finance Act figures before relying on this for a real tax filing.
▤ What to do next
Consider holding dividend-paying investments inside an ISA where practical, since dividends there are entirely tax-free and don't use up your dividend allowance.
UK-specific contextFigures use GBP and current published rates and thresholds.
Reviewed for clarityUpdated 3 August 2026.
ImportantFor planning and educational use — not tax, legal or financial advice.
Your privacy mattersInputs stay in your browser.
Frequently asked questions
Are dividends from an ISA taxed?+
No, dividends earned inside a Stocks & Shares ISA are completely tax-free and don't count towards the dividend allowance.
What is the dividend allowance?+
It's currently £500 per tax year — dividend income up to that amount is tax-free regardless of your other income.
Why is my dividend tax rate different from my income tax rate?+
Dividends have their own separate set of rates (10.75%/35.75%/39.35% for 2026/27) which are lower than the equivalent Income Tax bands, reflecting that the underlying company profits have already been taxed.
Do I need to declare dividend income to HMRC?+
If your dividend income exceeds the allowance, you may need to report it via Self Assessment or ask HMRC to adjust your tax code, depending on the amount.
Official references
Rules and thresholds used by this calculator are labelled for 2026–27 or formula-labelled period. Review the primary guidance before making a filing, borrowing, benefit or investment decision.
Last source review: 3 August 2026. Calculator results are estimates and may exclude circumstances described in the methodology.