Enter your dividends and your other taxable income for the tax year. The calculator applies your Personal Allowance, the £500 dividend allowance and the dividend rate of each band your dividends fall in, then shows the tax, what you keep and how it was worked out. Amounts are rounded to the nearest penny, one band at a time. It is for UK resident individuals; the same dividend rates apply in England, Scotland, Wales and Northern Ireland.
How dividends are taxed
Dividends count as the top slice of your income. Any part that falls within your Personal Allowance is tax-free, and so is the next £500, the dividend allowance. The rest is taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band in the 2026 to 2027 tax year. In 2025 to 2026 the first two rates were 8.75% and 33.75%.
Enter your other income
Add your salary, pension, self-employed and rental profits and savings interest for the same tax year, before tax. They use up your Personal Allowance and your bands first, which decides the rate your dividends pay. If you live in Scotland, enter them in the same way: Scottish rates apply to that other income, but your dividends are taxed at the same rates as in the rest of the UK. Leave out dividends from shares held in an ISA, which are tax-free.
Income over £100,000
Your Personal Allowance goes down by £1 for every £2 of income above £100,000, and is zero once your income reaches £125,140. The calculator uses your other income plus your dividends for this test. Pension contributions and Gift Aid donations reduce the income that counts, your adjusted net income, so if you make them your allowance may be higher than shown.
Telling HMRC
You do not need to tell HMRC about dividends within your dividend allowance. If you have tax to pay on dividends of £10,000 or less and do not send a Self Assessment return, tell HMRC after the tax year ends on 5 April and before 5 October, and it can collect the tax through your tax code. Above £10,000, you need to fill in a Self Assessment tax return.
Personal Allowance = £12,570, less £1 for every £2 of total income over £100,000.
Taxable dividends = dividends − the Personal Allowance left after your other income − the £500 dividend allowance.
Dividend tax = dividends in the basic rate band × 10.75% + in the higher rate band × 35.75% + in the additional rate band × 39.35% (2026 to 2027).
Example: £3,000 of dividends and £29,570 of wages
This is HMRC’s own example for 2026 to 2027. Total income is £32,570, and the £12,570 Personal Allowance leaves £20,000 of taxable income, all in the basic rate band. The wages take the first £17,000, the dividend allowance covers the next £500 of dividends, and the remaining £2,500 is taxed at 10.75%: £268.75 of dividend tax, so you keep £2,731.25 of the £3,000.
