Dividend tax

Tax on dividends from shares, funds or your own company.

Your details

Your result

Dividend tax to pay£806
  • You keep90%£7,194
  • Dividend tax10%£806
Dividend allowance (0%)£500
Effective rate on dividends10.1%
Assumptions and limits

2026/27 rates: 10.75% basic, 35.75% higher, 39.35% additional, after a £500 allowance. Dividends are taxed as the top slice of your income. Dividends in an ISA or pension are tax-free.

Sources: Tax on dividends · Income Tax ratesTax year 2026/27

Common questions

How do I pay dividend tax?

If your dividends are over £10,000, or you already file Self Assessment, you pay through your tax return. Below that, HMRC can usually collect it through your tax code.

Is there a dividend allowance?

Yes. The first £500 of dividends each year is tax-free.

How we calculate

Every calculator uses the published 2026/27 rates from one shared set of rules, so when a rate changes, it changes everywhere.

Where rates come from

Tax, National Insurance, student loan, benefit and property tax rates come from GOV.UK. Each calculator links to its sources.

What we don’t cover

Scottish income tax bands, tax codes other than 1257L, benefits in kind and your personal circumstances. Results are estimates to help you plan, not a payslip or advice.