Dividend Tax Calculator

Enter your salary or other income and your dividends to see the tax on the dividends, band by band.

Your income

Tax year

Salary and other income (£)

GBP

Dividends (£)

GBP

I pay Scottish income tax Changes the tax on your other income, not the dividend rates.

Tax on your dividends

£4,821.25

Tax year 2026-27

Effective rate on dividends

12.05%

On £40,000 of dividends

Total income tax

£4,821.25

£0 on other income

Dividends by band

Band	Dividends	Rate	Tax
Dividend allowance	500.00	0%	0.00
Dividend basic rate	37,200.00	10.75%	3,999.00
Dividend higher rate	2,300.00	35.75%	822.25
Total	40,000.00	—	4,821.25

Estimate only. Assumes your other income is earnings or similar, with no savings income, pension contributions or Gift Aid. Dividends inside an ISA or pension are not taxed and should be left out.

Guidance only. This calculator gives a general estimate and is not tax advice. Speak to your accountant before relying on these figures or making any decisions based on them.

How dividends are taxed

Dividends are treated as the top slice of your income. Any Personal Allowance left after your other income covers them first, then the first £500 is taxed at 0% under the dividend allowance. The rest is taxed at the dividend rate for the band it falls in.

Dividend tax rates

For 2026-27 the rates are 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. For 2025-26 they were 8.75%, 33.75% and 39.35%.

Scottish taxpayers

Scottish income tax rates apply to earnings and other non-savings income. Dividends are taxed at the UK dividend rates and bands wherever you live in the UK.

Need to file the CT600?

This calculator is for guidance only. Tax Optimiser prepares the full corporation tax computation and files the CT600 and accounts with HMRC and Companies House.