Dividend Tax Calculator
Estimate the tax due on your dividend income.
Estimated dividend tax
£2,096.25
- Dividends after tax
- £17,903.75
- Tax-free dividends
- £500.00
Estimate for 2026/27, scoped to England, Wales and Northern Ireland. The £500 dividend allowance occupies the tax bands; other-income tax is not shown. Scottish non-dividend bands are not modelled.
v1.1 · Reviewed September 2026
How this is worked out
Other income uses your personal allowance first, and any allowance left over covers dividends. The next £500 of dividends is covered by the dividend allowance. What remains is taxed at 10.75% within the basic rate band, 35.75% within the higher rate band and 39.35% above it. The personal allowance is reduced by £1 for every £2 of total income above £100,000.
Worked example
- Dividend income £20,000
- Other income £12,570
the personal allowance is used by the salary, £500 is the dividend allowance, and £19,500 falls in the basic rate band at 10.75%
£2,096.25 of dividend tax
Assumptions and limits
- Scoped to England, Wales and Northern Ireland. Scottish taxpayers pay Scottish rates on non-dividend income, which changes how much room is left in each band, and that is not modelled.
- Shows the tax on dividends only. Any tax due on the other income entered is not included.
- The dividend allowance is not a deduction: it occupies part of the band, which is why it can push later dividends into a higher rate.