Find out how much tax you owe on dividends for 2026/27. Add your salary or other income, your dividends and, if you wish, savings interest.
Results are estimates for planning. Check the figures before you make a financial or health decision.
How the Dividend tax calculator works
Income is stacked in a fixed order: other income first, then savings interest, then dividends on top.
- The Personal Allowance is applied first to other income, then savings, then dividends. It is reduced by £1 for every £2 of total income over £100,000.
- Other income is taxed at 20%, 40% and 45% using the England, Wales and Northern Ireland bands.
- Savings interest can fall within the starting rate for savings and the Personal Savings Allowance before being taxed at the normal rates.
- Dividends are covered by the dividend allowance (an input) and the remainder is taxed at the dividend ordinary, upper or additional rate, depending on where it falls in the bands.
Scotland uses the same dividend rates but its own bands for other income; this tool uses only the England, Wales and Northern Ireland bands. It ignores pension contributions, Gift Aid, tax already paid and National Insurance. Dividend rates and the allowance change, so check GOV.UK.
Worked example
Using the default values in the calculator above:
| Input | Value |
|---|---|
| Salary or other income | 30000 |
| Dividends received | 8000 |
| Savings interest, optional | 0 |
| Dividend allowance | 500 |
Dividend tax due: £806.25
| Personal Allowance | £12,570 |
|---|---|
| Income tax on other income | £3,486.00 |
| Dividend allowance used | £500.00 |
| Dividends taxed at 10.75% | £7,500.00 (tax £806.25) |
| Dividend tax as a share of dividends | 10.1% |
| Total income tax including dividends | £4,292.25 |
Tips and common mistakes
Enter dividends received in the tax year, not the year they were declared. If you take a salary through your own company, enter that salary as other income, because it decides how much of the basic-rate band is left for dividends. Dividends that push you over a band boundary are taxed at the higher rate only on the part above it. Tax on dividends is normally paid through Self Assessment, so set the amount aside rather than expecting it to be taken at source.
Frequently asked questions
Do I pay tax on dividends inside an ISA?
No. Dividends from shares held in an ISA are free of UK tax and do not use your dividend allowance. They do not need to be entered here.
Does the dividend allowance reduce my band?
Dividends covered by the allowance are taxed at 0% but they still count towards your income, so they use up part of your basic-rate band. That can push other dividends into a higher rate.
Who has to report dividends?
Check GOV.UK, as it depends on how much you receive and your other income. Many people with dividends above the allowance report them through Self Assessment.
Guides that help
- Dividend tax explained: rates, allowance and a worked example
- UK income tax explained: bands, allowance and how it's worked out
- National Insurance for employees: what you pay and why