Dividend tax calculator

Dividends are taxed after your other income. Your Personal Allowance of £12,570 is used against your salary or other income first, and any allowance left over can cover dividends. The first £500 of dividends above that is covered by the dividend allowance, and the rest is taxed at the dividend rate for the band it falls in.

The dividend allowance is taxed at 0%, but it still uses up part of your basic or higher rate band, which can push later dividends into a higher band. The calculator shows this line by line.

Dividend rates and bands are the same across the UK, including for Scottish taxpayers, although the tax on a Scottish taxpayer’s salary is worked out differently.

It is mainly for limited company directors who pay themselves a salary and dividends, and for people with shares outside an ISA. Our guide to paying yourself from a limited company explains the wider picture, including corporation tax, which the company pays before any dividend.

• Tax on the salary or other income itself. Use the income tax calculator for that.
• Savings interest and the Personal Savings Allowance.
• Dividends from shares held in an ISA, which are tax free.
• Pension contributions and other reliefs.

The result is an illustration for the 2026 to 2027 tax year, not a tax calculation you can rely on. It does not know your tax code or your full circumstances, so check anything important with HMRC or an accountant.