UK Dividend Tax Calculator 2026/27

Enter your annual dividend income and salary. The calculator applies the 2026/27 dividend allowance (£500) and the new 2026/27 dividend tax rates (10.75% / 35.75% / 39.35%) introduced in Autumn Budget 2025. Both the ordinary and upper rates rose by 2 points from April 2026.

Pennywise Finance Editorial

2026/27 UK dividend tax: £500 allowance, then 10.75% (ordinary) / 35.75% (upper) / 39.35% (additional). Verified against gov.uk Budget 2025 OOTLAR and HMRC "Tax on dividends" guidance.

Fact-checked
Reviewed September 2026
About our calculators

Runs entirely in your browser — your numbers are never sent to a server.

Your numbers

Annual dividend income£

Other taxable income (salary, pension etc.)£

Result

Dividend allowance—

Taxable dividends—

Tax owed on dividends—

Net dividends after tax—

How UK dividend tax works 2026/27

Dividends outside an ISA/SIPP are taxed via:

£500 dividend allowance (tax-free each tax year — but see below, the allowance still uses band room)
Dividends above that stack ON TOP of your other taxable income to determine the band
10.75% on dividends in the basic-rate band (up to £50,270 total income) — raised from 8.75% in April 2026
35.75% in the higher-rate band (£50,270-£125,140) — raised from 33.75% in April 2026
39.35% in the additional-rate band (over £125,140, unchanged)

How the £500 allowance really works: dividends inside the allowance are tax-free, but they still "use up" basic-rate band room. So the allowance is less valuable to higher earners than it looks.

Inside an ISA or SIPP

Dividends from investments held in a Stocks & Shares ISA or SIPP are completely free of UK dividend tax — no reporting, no allowance consumed. This is one of the strongest arguments for always using wrappers for income-generating investments.

How HMRC collects dividend tax

If dividends under £10,000 and you have no other reason to file, HMRC can collect via a PAYE tax code adjustment. Over £10,000 you must register for self-assessment.

Frequently asked questions

Did the dividend allowance change?

Yes — it dropped from £1,000 (2023/24) to £500 (from April 2024 onwards).

Do dividends inside ISAs count?

No. ISA/SIPP dividends are tax-free and never consume the £500 allowance.

What about dividends from my own limited company?

Same tax treatment. Many directors still prefer dividend-heavy pay vs salary because NICs don't apply, but the tax rates have been tightened considerably.

Illustrative calculation. Not personalised financial advice. Rates, bands and allowances for the 2026/27 UK tax year, verified against gov.uk at time of review. For regulated advice consult an FCA-authorised adviser.