Your dividends
Work out the tax on dividends from shares or your own company, on top of your salary or other income, and what you keep.
Income Tax and dividend figures current for 2026/27, last checked against GOV.UK.
Results update as you type
Your results
Nobody takes dividend tax off for you. Report it on a Self Assessment return, or ask HMRC to collect up to £10,000 of it through your tax code.
How much room before the next band
Your income is £55,000 in all. You can receive £5,000 more in dividends before the Child Benefit charge starts, at £60,000.
| What changes | Total income | Room left |
|---|---|---|
| Higher rate starts: dividends above this are taxed at 35.75% | £50,270 | Passed |
| Child Benefit charge starts, if you claim Child Benefit | £60,000 | £5,000 |
| Personal Allowance starts to shrink: you lose £1 for every £2 over | £100,000 | £45,000 |
| Additional rate starts: dividends above this are taxed at 39.35% | £125,140 | £70,140 |
Room is measured on your total income: salary, savings interest and dividends together. Pension contributions and Gift Aid can lower it, which this doesn’t include.
How the tax is worked out
Your other income of £45,000 uses up the bands first, then your dividends are added on top.
| Part of your dividends | Amount | Rate | Tax |
|---|---|---|---|
| Covered by the £500 dividend allowance | £500 | 0% | £0.00 |
| In the basic rate band | £4,770 | 10.75% | £512.78 |
| In the higher rate band | £4,730 | 35.75% | £1,690.98 |
| Dividend tax | £10,000 | £2,203.75 |
The same income with other dividends
| Dividends | Tax | You keep | Tax as a share |
|---|---|---|---|
| £1,000 | £53.75 | £946.25 | 5.4% |
| £2,000 | £161.25 | £1,838.75 | 8.1% |
| £5,000 | £483.75 | £4,516.25 | 9.7% |
| £10,000 (yours) | £2,203.75 | £7,796.25 | 22% |
| £20,000 | £5,778.75 | £14,221.25 | 28.9% |
| £50,000 | £16,503.75 | £33,496.25 | 33% |
| £100,000 | £40,260.21 | £59,739.79 | 40.3% |
Dividend tax for 2026/27 on £45,000 of other income, for each amount of dividends.
Using this calculator
Choose the tax year and where you live, then enter your other income for the year, any savings interest and the dividends you receive. The results show the tax on the dividends, what you keep, how the tax is built up band by band, and how much room you have before the next band.
- Other income means everything taxed before dividends: salary, pension, and self-employed or rental profit. Take the figure before tax. Savings interest has its own box and is taxed after that income but before the dividends.
- Dividends come last. They fill whatever is left of your Personal Allowance and the basic rate band, then the higher rate band, so the same dividends cost more on top of a higher income.
- The dividend allowance is taxed at 0% but still takes up room in the band it falls in.
- Choose Scotland if you live there: your salary and other income are then taxed at Scottish rates. Dividends and savings interest are taxed at UK rates wherever you live, so it changes the Income Tax on your other income, not the rates on the dividends.
- “How much room before the next band” shows how much more you could receive before dividends are taxed at the next rate, before the Child Benefit charge starts, and before you start to lose Personal Allowance. It uses your total income, so it moves when you change your salary or savings.
- Dividends inside an ISA or a pension aren’t taxed and aren’t counted. National Insurance isn’t charged on dividends.
For the rates, the allowance and worked examples, read how dividend tax works.
How the figures are worked out
The tax is the same sum the Income Tax calculators on this site use. Your other income is taxed first, using the Personal Allowance, then dividends sit on top. Whatever is left of your Personal Allowance covers dividends first, then the dividend allowance is taxed at 0%, then each slice of dividends is taxed at the dividend rate for the band it falls in. The dividend tax shown is the Income Tax on your income with the dividends, less the Income Tax without them, so it includes any Personal Allowance the dividends cost you above £100,000, and the savings allowance if they lift you into the higher rate band. Savings interest is taxed after your other income and before the dividends, using the starting rate for savings and the Personal Savings Allowance, so it can push dividends into a higher band. If you live in Scotland, the Scottish rates are used for your other income only. The figures don’t include Capital Gains Tax or anything your company pays.
Where the figures come from
Every rate and allowance checked against GOV.UK in October 2026.
- GOV.UK: Tax on dividends: the allowance and the rates for each tax year, and how to report dividends.
- GOV.UK: Income Tax rates and allowances, current and past: the Personal Allowance, the bands and the £100,000 taper.
- GOV.UK: Change to tax rates for property, savings and dividend income: the 2 percentage point rise in the ordinary and upper rates from April 2026.