Dividend Tax Calculator — 2026/27
What is the Dividend Tax Calculator?
Dividend tax is paid by UK shareholders on dividend income above the £500 dividend allowance (2026/27). Rates are 8.75% (basic), 33.75% (higher) and 39.35% (additional). The allowance was cut from £2,000 in 2022/23 to £1,000 in 2023/24 and £500 from 2024/25 onwards.
Last reviewed: against HMRC rates for 2024/25 & 2025/26.
Dividend tax — 2026/27
Worked example
Receive £15,000 in dividends in 2025/26 as a higher-rate taxpayer: £500 allowance + £14,500 × 33.75% = £4,894 dividend tax.
Frequently asked questions
+What is the dividend allowance for 2025/26?
£500. The first £500 of dividend income each year is tax-free, regardless of which income-tax band you fall into.
+How are dividends taxed for company directors?
Dividends sit on top of other income. After the £500 allowance, dividends in the basic-rate band are taxed at 8.75%, higher-rate at 33.75% and additional-rate at 39.35%.
+Do dividends count towards the personal allowance?
Yes. The £12,570 personal allowance can be set against dividend income if you have no other income, effectively making the first £13,070 of dividends tax-free in that case.
+Are ISA dividends taxable?
No — dividends received inside a Stocks and Shares ISA are completely tax-free and do not need to be reported on a tax return.