Dividend tax calculator
See how much tax you pay on dividends from shares held outside an ISA or pension, using the 2026 to 2027 rates. Put in your other income first, because it decides which band your dividends fall into.
Tax on your dividends
How dividend tax works
- Everyone gets a £500 dividend allowance. You pay no tax on the first £500 of dividends.
- Dividends are added on top of your other income. Any Personal Allowance (£12,570) you haven't used on other income covers dividends first.
- Above that, dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band.
- The £500 allowance still uses up part of your band, so it can push other dividends into a higher band.
- If your total income is over £100,000, your Personal Allowance goes down by £1 for every £2 over.
- Dividends from shares in an ISA are tax free and don't count here.
The calculator leaves out savings interest and Scottish income tax bands. If either applies to you, or you are close to a band edge, check with HMRC or an accountant.
Figures for the 2026 to 2027 tax year (6 April 2026 to 5 April 2027) from GOV.UK: Tax on dividends, Income Tax rates. Rates for England, Wales and Northern Ireland. This is a guide for information only, not tax advice. Your numbers stay in your browser.
Holding shares outside an ISA? Our ISA allowance calculator shows how much you can still move in this tax year.