Dividend tax £3,171. Dividends after tax £26,829.
You receive £30,000 in dividends. After the £500 dividend allowance, £29,500 is taxable and falls in the basic-rate dividend band (10.75%), giving an estimated dividend tax of £3,171.25.
Other income plus dividends after dividend tax: £39,399. Your other income is shown before any income tax or National Insurance due on it.
Dividend tax rates rose by 2 percentage points for 2026/27 — this calculator uses the new rates of 10.75%, 35.75% and 39.35% (up from 8.75% and 33.75%).
How your dividends are taxed
| Dividend income | £30,000.00 |
| Dividend allowance (0%) | £500.00 → £0.00 |
| Basic rate (10.75%) | £29,500.00 → £3,171.25 |
| Dividend tax | −£3,171.25 |
| Dividends after tax | £26,828.75 |
The first £500 of dividends is tax-free (the dividend allowance). Above that, dividends are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band — stacked on top of your other income.
How your other income changes the tax
Same £30,000 of dividends, taxed on top of different salaries. Tap to load a scenario.
Frequently asked questions
How much tax do I pay on dividends in 2026/27?
The first £500 of dividends is tax-free (the dividend allowance). Above that, dividends are taxed at 10.75% if they fall in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band for 2026/27. These rates rose by 2 percentage points (from 8.75% and 33.75%) on 6 April 2026. Dividends are stacked on top of your other income, so your salary decides which rate applies.
What is the dividend allowance?
The dividend allowance lets you receive £500 of dividends tax-free each year (down from £1,000 in 2023/24). It still uses up part of your tax band — it does not reduce the tax on the rest of your dividends.
Do dividends use my personal allowance?
Yes. If your other income is below the £12,570 personal allowance, the unused part covers your dividends first, then the £500 dividend allowance applies, and only the remainder is taxed.
How are salary and dividends taxed together for a company director?
A common setup is a £12,570 salary (which uses the personal allowance and pays little or no National Insurance) plus dividends. The salary is taxed as normal income; the dividends sit on top and are taxed at dividend rates after the £500 allowance.
Are dividends inside an ISA taxed?
No. Dividends from shares and funds held inside a Stocks & Shares ISA are completely tax-free and do not count towards your dividend allowance, so leave them out of this calculator.
Related calculators & guides
Sources — official UK figures
A simplified estimate using 2026/27 dividend rates and the £500 dividend allowance. It taxes your other income at rUK (England, Wales & Northern Ireland) rates; Scottish taxpayers pay Scottish rates on non-dividend income, but dividend rates and thresholds are the same across the UK. It does not cover the starting rate for savings, gift aid, or other reliefs. Dividends held inside an ISA are tax-free and should be left out. For an exact figure, complete a Self Assessment return or speak to an accountant.