-
CALL US 0203 883 4777
UK Dividend Tax Calculator (2026/27)
Calculate exact dividend tax payable based on salary and total dividend income.
Dividend Tax Summary
2026/27 Dividend Tax Rates & Allowances
| Dividend Tax Band | Taxable Income Band | 2026/27 Dividend Rate |
|---|---|---|
| Tax-Free Dividend Allowance | First £500 of dividends | 0% |
| Basic Rate (10.75%) | Up to £37,700 taxable income | 10.75% |
| Higher Rate (35.75%) | £37,701 to £125,140 taxable income | 35.75% |
| Additional Rate (39.35%) | Over £125,140 taxable income | 39.35% |
Frequently Asked Questions
What are the UK dividend tax rates for 2026/27?
For 2026/27, the dividend tax rates are: Basic rate = 10.75%, Higher rate = 35.75%, and Additional rate = 39.35%.
What is the annual tax-free dividend allowance for 2026/27?
The tax-free dividend allowance is £500 for the 2026/27 tax year. You pay no dividend tax on the first £500 of dividend income received.
How does salary affect dividend tax bands?
Your salary and other non-dividend income use up your Personal Allowance (£12,570) and basic rate tax band (£37,700 taxable income) first. Dividends are taxed on top of your non-dividend income.
Do company directors pay National Insurance on dividends?
No. Dividends are paid out of post-tax company profits and are not subject to Employee or Employer National Insurance contributions.
How does the Personal Allowance taper affect dividend tax for earnings over £100,000?
If your total income (salary + dividends) exceeds £100,000, your Personal Allowance reduces by £1 for every £2 of income above £100,000, reaching zero at £125,140. This increases taxable dividend income.
Related Services & Calculators
Important information about these calculators
Purpose. These free calculators are provided by Apex Accountants & Tax Advisors LTD to give an indication of common UK tax and accounting figures. They are designed to help you understand the general position before taking professional advice.
Not advice. The results are indicative estimates only. Nothing produced by these tools constitutes tax, accountancy, auditing, financial or legal advice, and using them does not create a client relationship with Apex Accountants. No tool on this website should be used as a substitute for a formal review of your circumstances by a qualified adviser.
Assumptions and accuracy. Each calculator applies published HMRC rates and thresholds for the 2026/27 tax year (last verified September 2026) together with the simplifying assumptions listed on the tool itself. Your actual liability depends on factors a calculator cannot see — other income, pension contributions, residency, marriage allowance, associated companies, changes announced after the verification date and more. Where a result matters to you, check it against the current published rates on GOV.UK or ask us to check it with you.
Do not rely. Please do not make financial, tax or business decisions based solely on the output of these tools. If a figure on this page would affect a decision you are making, book a free consultation with one of our chartered accountants (ACCA/ICAEW) first.
Rates change. Tax rates, thresholds and reliefs change with Budgets and Finance Acts, sometimes retrospectively. We review the calculators regularly but they may briefly lag a change announced by HMRC.
Comparison and IR35 tools. The IR35, limited company vs sole trader, salary and dividend and similar comparison tools are illustrative only. In particular, no calculator can determine whether you are inside or outside IR35 — that status depends on your contracts and actual working practices and is ultimately a matter for HMRC and the courts. The figures shown for each scenario use the assumptions stated on the tool and are not a prediction of your own take-home pay.
Liability. To the fullest extent permitted by law, Apex Accountants & Tax Advisors LTD accepts no liability for any loss or damage arising from the use of, or reliance on, these calculators or their results. This does not affect your statutory rights. Use of these tools is subject to our website Terms & Conditions.
© Apex Accountants & Tax Advisors LTD. Figures checked by our ACCA/ICAEW chartered accountants. Last reviewed September 2026.