Dividend Tax Calculator 2026/27 (10.75% / 35.75% / 39.35%)
Enter your salary and dividends to see how much dividend tax you'll pay for 2026/27, after the rise in basic and higher rates to 10.75% and 35.75%.
Estimates for information only, using 2026/27 rates for England, Wales and Northern Ireland unless stated. Not financial or tax advice; check your own situation with HMRC or a qualified adviser.
How it works
Dividends sit on top of your other income. Any personal allowance your salary hasn't used covers dividends first.
The first £500 of dividends is tax-free (the dividend allowance), but it still uses up space in your tax band.
Dividends are then taxed at 10.75% in the basic band, 35.75% in the higher band and 39.35% above £125,140. Dividends inside an ISA or pension are tax-free.
Frequently asked questions
Did dividend tax go up in 2026?+
Yes. From 6 April 2026 the basic rate rose from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%. The additional rate stayed at 39.35%.
What's the most tax-efficient director salary?+
Many directors take a salary around £12,570 and the rest as dividends, but the best mix depends on your company's profits and NI. Ask an accountant for your situation.
Do I need to tell HMRC about dividends?+
If your dividends are over £10,000, or you already do Self Assessment, you report them on your tax return.