A basic-rate taxpayer (gov.uk's own example)
£29,570 of other income and £3,000 of dividends.
- Dividend allowance: £500 at 0%£0.00
- Basic band: £2,500 at 10.75%£268.75
Dividend tax£268.75
£218.75 in 2025/26
Dividend tax calculator for 2026/27
Put in what you earn and what your shares paid you outside an ISA or pension. You get this tax year's bill, band by band, and what April's rate rise is costing you.
The short answer
From 6 April 2026, dividends above the £500 allowance are taxed at 10.75% in the basic band, 35.75% in the higher band and 39.35% in the additional band. Earn £29,570 and get £3,000 in dividends, and you pay £268.75 on them.
Checked against gov.uk on 9 November 2026. Dividends inside an ISA or SIPP are never taxed.
Salary, pension, rent and interest, added up.
Where your £0 lands in 2026/27
| Band | Dividends | Rate | Tax |
|---|---|---|---|
| Personal allowance | £0 | 0% | £0.00 |
| Dividend allowance | £0 | 0% | £0.00 |
| Basic band | £0 | 10.75% | £0.00 |
| Higher band | £0 | 35.75% | £0.00 |
| Additional band | £0 | 39.35% | £0.00 |
| Total | £0 | £0.00 |
Your dividend tax for 2026/27
£0.00
- The April 2026 rate rise costs you
- £0.00
- Same income in 2025/26
- £0.00
If you hold shares in more than one account
Dividends from an ISA, a SIPP or US shares change the answer. Open whichever applies to you.
Worked examples for 2026/27
A higher-rate investor
£60,000 of other income and £4,000 of dividends.
- Dividend allowance: £500 at 0%£0.00
- Higher band: £3,500 at 35.75%£1,251.25
Dividend tax£1,251.25
£1,181.25 in 2025/26
Someone whose dividends cross the higher-rate line
£45,270 of other income and £8,000 of dividends.
- Dividend allowance: £500 at 0%£0.00
- Basic band: £4,500 at 10.75%£483.75
- Higher band: £3,000 at 35.75%£1,072.50
Dividend tax£1,556.25
£1,406.25 in 2025/26
Questions people ask
What are the dividend tax rates for 2026/27?
You pay 10.75% on dividends in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. The first £500 of dividends each year is tax free. Before 6 April 2026 the first two rates were 8.75% and 33.75%.
Does the £500 allowance use up my basic rate band?
Yes. The £500 is taxed at 0%, but it still counts as income when HMRC works out your band. If your salary leaves only a little basic rate band, the allowance can fill it, and the dividends after it are taxed at 35.75%. The calculator's band table shows the split.
Do I pay tax on dividends in an ISA or SIPP?
No. Dividends paid inside an ISA or a SIPP are not taxed, and they do not count towards your £500 allowance or your tax band. What you later draw from a SIPP is taxed as pension income, but the dividends paid inside it are not.
How are US dividends taxed if I live in the UK?
The US takes 15% before the money reaches you if you have filled in a W-8BEN, and 30% if you have not. In a general account you can set that 15% against the UK tax on the same dividends, but only up to the UK tax due on them. Inside an ISA the 15% is still taken and nobody pays it back. A SIPP is exempt from US tax under the UK-US treaty, though your provider has to claim that for you.
I live in Scotland. Is it different?
Not for dividends. Scottish rates apply to wages and pensions, but dividends are taxed at the same rates and bands as the rest of the UK. The one figure that changes is the cost of losing personal allowance above £100,000, because that falls on your other income at Scottish rates.
When do I need to tell HMRC?
If all your dividends fit inside your unused personal allowance and the £500, you do not. Up to £10,000, tell HMRC by 5 October after the tax year ends, or ask them to collect it through your tax code. Over £10,000, you need a Self Assessment return.
I'm a company director. Does this work for me?
Yes, for the personal tax on dividends you take from your company. Put your salary in other income and your dividends in the dividends box. It does not work out corporation tax or the best mix of salary and dividends.
What about REIT payouts and savings interest?
Most of what a UK REIT pays out is a property income distribution, which is taxed as property income rather than as a dividend. Put it in other income instead. It is taxed before your dividends, so it still decides which band they land in. Savings interest goes in other income too. That puts your dividends in the right band, but the calculator does not work out the tax on the interest itself.
How the sums are done
- Your other income is taxed first and uses your personal allowance first. Dividends sit on top. Any allowance your other income does not use covers dividends.
- The £500 dividend allowance is taxed at 0% but still uses up band space. Above £100,000 of income the personal allowance shrinks by £1 for every £2, and pension and Gift Aid payments move the bands up by their gross amount.
- For US dividends, the UK tax on them is worked out by doing the sum with and without them, and the US tax you can set against it is capped at that amount.
- Each band's tax is rounded to the penny and the bill is their total. It does not cover savings interest, REIT property income or the tax on your other income itself.
Informational only. This is not tax advice. For your own position, check with HMRC or an accountant.
Where to next
- UK dividend tax guide The allowance, the bands and the wrappers explained in plain English.
- Capital gains on a move into an ISA Selling to move a holding can create a gain. See what it is and how to spread it.
- Track your Trading 212 dividends Import your export and see every payment by ISA, SIPP and general account.
- Plan the income you are building Project what the portfolio pays at retirement across ISA, SIPP and GIA.
This is not financial or tax advice. Calculations are for illustration only and rely on inputs and assumptions you control. Tax rules and contribution limits change, so verify against current gov.uk guidance before making decisions.