Dividend Tax Calculator UK 2025/26: What You Owe on Your Dividends

Enter your dividends and your other income, and see the tax due for 2025/26. The detail that trips people up: dividends are taxed on top of your other income, so the rate you pay depends on how much salary, pension or other taxable income you already have. The same dividend can be taxed at three different rates as it stacks up through the bands.

This uses England, Wales and Northern Ireland figures for 2025/26: a 12,570 pound personal allowance, a 500 pound dividend allowance, the higher rate threshold at 50,270 pounds and the additional rate from 125,140 pounds, with the personal allowance tapering away between 100,000 and 125,140 pounds. Dividend rates are 8.75 percent in the basic band, 33.75 percent in the higher band and 39.35 percent in the additional band. Dividends sit on top of your other income, so any unused personal allowance is set against your other income first. The dividend allowance does not give you extra tax-free room on top; it taxes the first 500 pounds of dividends at 0 percent but still uses up that slice of whichever band it falls in. Dividends inside a stocks and shares ISA or pension are tax free and should not be entered here. Scottish income tax bands differ for non-dividend income, but dividend tax rates and thresholds are the same across the UK.