UK Dividend Tax Calculator
Estimate the Income Tax due on dividends using your other income, Personal Allowance and the current UK dividend rates.
LedgerKit provides estimates based on the information entered and the configured rates. Results do not constitute accounting, tax or legal advice. Check the latest official guidance or consult a qualified professional before acting on a calculation.
How this calculator works
Choose the tax year and where you pay Income Tax, then enter gross dividends received outside ISAs. Enter salary, self-employment profit, pensions and property income separately as other non-savings income before Personal Allowance.
Dividends sit above other income when their tax bands are worked out. The £500 Dividend Allowance is a 0% rate, so it can make part of a dividend tax-free but still uses space in the basic, higher or additional-rate band.
The calculator estimates the standard Personal Allowance from the income entered, including the £1 reduction for every £2 of adjusted net income above £100,000. It then tests permitted allowance allocations and uses the one that produces the lowest combined Income Tax estimate. Scottish non-savings rates are included for that allocation step; dividend rates remain UK-wide.
This is for a UK-resident individual with ordinary dividends and non-savings income. Do not include ISA dividends. Savings interest, foreign income and tax credits, trusts, specialist reliefs, Marriage Allowance, Blind Person’s Allowance, pension and Gift Aid band extensions, student loans and the High Income Child Benefit Charge are outside this estimate.
Worked example
For 2026/27, £30,000 of other income and £20,000 of dividends gives a £12,570 Personal Allowance. The remaining dividends fit in the basic-rate band: £500 is covered by the Dividend Allowance and £19,500 at 10.75% gives estimated dividend tax of £2,096.25. Dividends after that tax are £17,903.75.
Frequently asked questions
What are the dividend tax rates for 2026/27?
For 2026/27, dividends above available allowances are charged at 10.75%, 35.75% or 39.35%, depending on the band they fall into. For 2025/26, the first two rates were 8.75% and 33.75%; the additional rate was 39.35%.
Why does my other income matter?
Dividends are generally the top slice of income. Other taxable income uses the lower bands first, so one dividend amount can span several dividend rates. This calculator excludes savings interest because it introduces separate ordering and allowance rules.
Does the £500 Dividend Allowance reduce taxable income?
No. It is a 0% dividend rate. The covered amount does not create dividend tax, but it still occupies space in the tax bands.
Should I include dividends from an ISA?
No. Dividends from shares held in an ISA are not taxed and should not be entered.
Why can some Personal Allowance be used against dividends?
The Income Tax calculation uses allowances in the way that gives the greatest reduction in the overall liability. Near a tax-band boundary, using some Personal Allowance against dividends can produce a lower total than applying all of it to other income first.
Does this cover pensions, Gift Aid and every Self Assessment rule?
No. Relief-at-source pension contributions and Gift Aid can reduce adjusted net income and extend tax bands. Entering a custom Personal Allowance changes the allowance only; it does not extend the bands. Use HMRC’s full calculation or ask a tax adviser for complex circumstances.
Do I need to tell HMRC about dividend income?
HMRC says dividend tax due must be reported. The route depends on the amount and whether you already complete Self Assessment; dividend income above £10,000 normally requires a tax return. Check HMRC’s current reporting guidance.