What is the dividend allowance for 2026/27?

The dividend allowance is £500 for 2026/27. Dividends up to this amount are tax-free regardless of your income tax band.

Are dividends taxed at the same rate as salary?

No. Dividend tax rates are lower than income tax rates: 10.75% (basic), 35.75% (higher), and 39.35% (additional). However, dividends are treated as the top slice of your income, stacked above salary.

Do I need to declare dividends under £500?

If your total dividend income is £500 or less, you do not need to report it to HMRC. Above £500, you must declare dividends via self assessment.

Dividend Tax Calculator 2026/27

Calculate the tax due on dividends received in 2026/27. Enter your dividend income and other earnings to see how much falls into each rate band.

How it's calculated

Dividend allowance: £500. Rates from 6 April 2026: 10.75% (basic rate band), 35.75% (higher rate band), 39.35% (additional rate band). Dividends are treated as the top slice of income.

Frequently Asked Questions

What is the dividend allowance for 2026/27?: The dividend allowance is £500 for 2026/27. Dividends up to this amount are tax-free regardless of your income tax band.
Are dividends taxed at the same rate as salary?: No. Dividend tax rates are lower than income tax rates: 10.75% (basic), 35.75% (higher), and 39.35% (additional). However, dividends are treated as the top slice of your income, stacked above salary.
Do I need to declare dividends under £500?: If your total dividend income is £500 or less, you do not need to report it to HMRC. Above £500, you must declare dividends via self assessment.