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Functional dividend tax estimate

Dividend Tax Calculator UK

Estimate the personal tax attributable to taxable dividends after the Personal Allowance and dividend allowance. Enter your other taxable income as well, because it determines which dividend tax bands your dividends fall into.

2026/27 current rates10.75%, 35.75% and 39.35% above the allowance.
£500 dividend allowanceModelled as a 0% dividend band that still uses tax-band capacity.
Private calculationInputs stay in your browser and no account is required.
Enter your dividend details
Use gross taxable income for the selected tax year. Exclude ISA dividends.

Include taxable salary, pension, self-employed profit, rental profit and other non-dividend taxable income. Do not deduct the Personal Allowance yourself.

Include taxable UK dividends. Do not include dividends from shares held in an ISA.

Estimate only. This does not calculate Corporation Tax, salary PAYE, foreign-tax credits, Marriage Allowance, Blind Person's Allowance or company-law dividend capacity.
Your estimate will appear here
The result separates the dividend allowance and the dividend income falling in each rate band.
Try the pre-filled example: £40,000 of other taxable income and £20,000 of dividends. It shows why one dividend payment can span both the basic and higher dividend rates.
How the calculation works

The calculator first combines your other taxable income and dividend income to work out the standard Personal Allowance, including the taper above £100,000. Any unused Personal Allowance can cover dividends before the dividend allowance is considered.

The dividend allowance then applies at 0%, but it still occupies room in the tax band in which it falls. Remaining taxable dividends are split across the basic, higher and additional dividend-rate bands.

This page estimates only the tax attributable to dividends. It does not recalculate the Income Tax already due on salary, pension, business profit or rental profit.

Real-world example

A shareholder has £40,000 of other taxable income and receives £20,000 of taxable dividends in 2026/27. With the standard Personal Allowance, some dividend income remains within the basic-rate band and the rest falls into the higher-rate band.

Dividend allowance£500
Basic-rate dividend slice£9,770
Higher-rate dividend slice£9,730
Estimated dividend tax£4,528.75

The example is deliberately simple. Director salary planning, company profits and Corporation Tax are separate questions and should not be inferred from this result.

Dividend Tax Guide UK

Understand allowances, tax bands, records and common dividend mistakes.

Open resource

Salary vs dividends

See the wider director considerations beyond personal dividend tax alone.

Open resource

Self Assessment calculator

Estimate a wider tax-return position when dividends sit alongside other income.

Open resource

Official references used

GOV.UK — Tax on dividendsGOV.UK — Income Tax rates and Personal AllowancesGOV.UK — Check tax on dividends and savings interest

How this guidance is reviewed

Author

Written and maintained by UK Tax Toolbox, led by founder Conor Dwyer. Calculator assumptions are checked against the public sources linked on the page.

Last reviewed

12 August 2026

Basis of guidance

Public HMRC and GOV.UK guidance, published tax thresholds and the calculator assumptions stated on each page.

Useful official references

GOV.UK — Tax on dividendsGOV.UK — Income Tax rates and Personal AllowancesGOV.UK — Check tax on dividends and savings interest

Spot something that looks out of date? Use the contact page to flag corrections. Important tax decisions should still be checked with HMRC or a qualified adviser.

Frequently asked questions