Work out UK dividend tax for 2026/27: enter your dividends and other income to see the £500 allowance, the tax by band and what you keep. Rates from GOV.UK, checked October 2026.
£268.75dividend tax
Dividends outside an ISA
£3,000.00
Covered by Personal Allowance
£0.00
Covered by £500 dividend allowance
£500.00
Taxed at 10.75% (basic)
£2,500.00
Taxed at 35.75% (higher)
£0.00
Taxed at 39.35% (additional)
£0.00
Dividends you keep after tax
£2,731.25
Effective rate on dividends
8.96%
The short answer
For 2026/27, GOV.UK says the first £500 of dividends is covered by the dividend allowance. Above it, dividends are taxed at 10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate). Dividends inside a stocks and shares ISA are not taxed. Figures as of October 2026.
How does the calculator work out the tax?
Your other income uses the £12,570 Personal Allowance first. Any unused part covers dividends. The allowance shrinks by £1 for every £2 of income over £100,000.
The next £500 of dividends is taxed at 0%, but still counts towards your band.
The rest is taxed by band, measured on taxable income after the Personal Allowance: basic up to £37,700, higher up to £125,140, additional above.
It is an estimate, not tax advice. It does not model pension contributions, Gift Aid, the marriage allowance, savings or property income interactions, or separate Scottish bands. GOV.UK publishes one set of dividend rates for the UK, which is what is used here. For the rules in full, read our guide to dividend tax in the UK. To see how an ISA removes the tax, see the best stocks and shares ISA platforms, and for US shares the cost of buying US shares from the UK.
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Frequently asked questions
How is dividend tax calculated in the UK?
Dividends are added on top of your other income. The part inside your Personal Allowance is untaxed, the next £500 is covered by the dividend allowance, and the rest is taxed at 10.75%, 35.75% or 39.35% depending on your Income Tax band, according to GOV.UK for 2026/27. The calculator applies those steps in that order.
How much dividend income can I receive tax-free in 2026/27?
The dividend allowance is £500 for 2026/27, according to GOV.UK. If your other income is below the £12,570 Personal Allowance, dividends can also use the unused part of it. Dividends from shares held inside a stocks and shares ISA are tax-free and do not count towards the allowance at all.
Does the calculator include Scottish tax bands?
It does not model Scottish bands separately. GOV.UK publishes one set of dividend rates and bands for the whole UK, and the calculator uses those. If your other income is taxed at Scottish rates, your band for dividends may differ slightly, so check with HMRC or an adviser.
Why does my result differ from my HMRC tax code or return?
The calculator is a simplification. It treats the figures you enter as total gross income and ignores pension contributions, Gift Aid, the marriage allowance, savings income and the High Income Child Benefit Charge, all of which can change your band. Treat the answer as an estimate and use your Self Assessment return for the exact figure.
Do I need to tell HMRC about dividends?
Only if they exceed the £500 allowance, according to GOV.UK. Within the allowance you do not need to tell HMRC. Above it, report them on a Self Assessment return, or for up to £10,000 you can ask HMRC to change your tax code. Dividends inside an ISA are never reported.
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