Free tool · 2026/27 dividend rates

Dividend tax calculator 2026/27

Taking dividends from your company or investments? Estimate your dividend tax using the new 2026/27 rates of 10.75%, 35.75% and 39.35%. Then let us file your director tax return from £250, VAT included.

  • New April 2026 dividend rates
  • £500 dividend allowance
  • Salary and dividends combined
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Free calculator
Free no sign-up needed
  • Updated for 2026/27
  • Instant, private estimate
  • Accountant review available
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Estimate your dividend tax

Uses 2026/27 dividend rates. Nothing is stored or sent.

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Who it’s for

Who this calculator is for

Anyone receiving dividends outside an ISA or pension.

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Company directors

Planning salary and dividends.

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Share investors

Dividends from shares and funds.

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Family shareholders

Spouses and family members with shares.

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Contractors

Personal service company owners.

Packages & prices

Want us to file it for you?

Use the calculator for free, then let a Chartered Certified Accountant prepare and file your return. VAT included.

Starter
Straightforward returns and simple sole traders.
£150
per year · incl. VAT
  • Self Assessment tax return
  • Tax calculation explained
  • Online filing with HMRC
  • Deadline reminders
Start my return
Most popular
Growth
Self-employed, landlords, directors or several income sources.
£250
per year · incl. VAT
  • Everything in Starter
  • Self-employment or rental schedules
  • Expense and allowance review
  • Payments on account planning
Start my return
Complete
Bookkeeping, MTD, several properties, crypto or foreign income.
Quote
fixed fee
  • Everything in Growth
  • Capital gains and crypto
  • Foreign income and relief
  • Making Tax Digital support
Request a quote

All prices include VAT.

What’s included

What the calculator works out

Using 2026/27 rates for England, Wales and Northern Ireland.

  • Personal allowance, including the taper
  • The £500 dividend allowance
  • Dividends at 10.75% in the basic band
  • Dividends at 35.75% in the higher band
  • Dividends at 39.35% in the additional band
  • Your effective dividend tax rate
How it works

A seamless, fully online process

Enter your salary

Plus any other non-dividend income.

Enter your dividends

Total dividends for the tax year.

See your estimate

Dividend tax and effective rate.

Plan ahead

Use it to model next year’s mix.

Rates used

Dividend tax rates

Rates rose by two percentage points from 6 April 2026.

Band2025/262026/27
Dividend allowance£500£500
Basic rate8.75%10.75%
Higher rate33.75%35.75%
Additional rate39.35%39.35%

How is dividend tax calculated?

In short: your personal allowance is used against salary and other income first. Dividends sit on top. The first £500 of dividends is tax-free, then the rest is taxed at 10.75%, 35.75% or 39.35% depending on which band it falls into.

A worked example

A director takes a £12,570 salary and £40,000 of dividends. The salary uses the personal allowance. £500 of dividends is tax-free, £37,200 falls in the basic band at 10.75% and £2,300 in the higher band at 35.75%. Dividend tax is about £4,821.

Salary or dividends?

With higher dividend rates and employer National Insurance at 15%, the best mix has changed. Our business tax planning service models it with your real figures, and our company director tax returns service files your return. More on our tax calculators page.

Official guidance: Tax on dividends

Company director calculating dividend tax
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FAQs

Frequently asked questions

What is the dividend allowance for 2026/27?
£500. Dividends above that are taxed at your dividend rate.
What are the dividend tax rates for 2026/27?
10.75% basic, 35.75% higher and 39.35% additional rate.
Do I need a tax return for dividends?
Usually yes if dividends exceed £10,000, or if they exceed £500 and HMRC cannot collect the tax through your tax code.
Are dividends in an ISA taxed?
No. Dividends in ISAs and pensions are tax-free.
Does the calculator include the £100,000 taper?
Yes. Dividends count towards adjusted net income.
Can you file my director tax return?
Yes, from £250, VAT included.

Let us file your director tax return

Share a few details and a qualified accountant will respond with a fixed-fee proposal, usually within one working day. All prices include VAT.

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