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.
UK rates for the 2026/27 tax year · last checked against GOV.UK on
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.
Dividend tax rates since 2016
The dividend allowance replaced the old dividend tax credit in April 2016. It started at £5,000 and has been cut three times since, to £2,000, then £1,000, then £500. The three rates have only ever gone up: by 1.25 percentage points across the board in April 2022, and by a further 2 points at the basic and higher rates in April 2026. Both charts are drawn from the same rate table the calculator uses.
Dividend tax rates by tax year
- Basic rate
- Higher rate
- Additional rate
Show the figures as a table
| From | Basic rate | Higher rate | Additional rate |
|---|---|---|---|
| 2016/17 | 7.5% | 32.5% | 38.1% |
| 2018/19 | 7.5% | 32.5% | 38.1% |
| 2022/23 | 8.75% | 33.75% | 39.35% |
| 2023/24 | 8.75% | 33.75% | 39.35% |
| 2024/25 | 8.75% | 33.75% | 39.35% |
| 2026/27 | 10.75% | 35.75% | 39.35% |
Dividend allowance by tax year
Show the figures as a table
| From | Dividend allowance |
|---|---|
| 2016/17 | £5,000 |
| 2018/19 | £2,000 |
| 2022/23 | £2,000 |
| 2023/24 | £1,000 |
| 2024/25 | £500 |
| 2026/27 | £500 |
Rates and sources
This calculator uses UK rates for the 2026/27 tax year, last checked against GOV.UK on .
Tax on dividends — official guidance:
- gov.uk/tax-on-dividends
- gov.uk/government/publications/changes-to-tax-rates-for-property-savings-and-dividend-income
- gov.uk/government/publications/rates-and-allowances-income-tax/income-tax-rates-and-allowances-current-and-past
Rates change, usually at the start of a tax year in April. Always confirm against GOV.UK before relying on a figure for a filing or a financial decision.
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 rates are lower than income tax rates. For 2026/27 they are 10.75% at the basic rate, 35.75% at the higher rate and 39.35% at the additional rate. The basic and higher rates each rose by 2 percentage points in April 2026. Dividends are stacked on top of your salary, so your salary determines which band they fall into. Worked example: with a £40,000 salary and £10,000 of dividends, the first £500 is covered by the dividend allowance and the remaining £9,500 is taxed at 10.75%, giving £1,021.25.
- 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.
- How have dividend tax rates changed over time?
- The dividend allowance was introduced in April 2016 at £5,000 and has been cut three times since: to £2,000 in April 2018, £1,000 in April 2023 and £500 in April 2024. The rates started at 7.5%, 32.5% and 38.1%, rose by 1.25 percentage points in April 2022, and the basic and higher rates rose by a further 2 points in April 2026. Someone with £10,000 of dividends and no other income paid £375 in 2016/17 and pays £1,021.25 in 2026/27, on the same dividends. The chart on this page shows each change.