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UK · 2026/27

Dividend Tax Calculator

Estimate 2026/27 UK tax on dividends alongside employment salary, including the £500 allowance, Personal Allowance taper and current dividend rates.

Last reviewed: 5 August 2026Source: GOV.UK — Tax on dividendsUpdated every: tax-year or rule change
Dividend Tax Calculator · UKTax & Salary

Results update when you select Calculate.

Example result based on the prefilled values.

Total Net Income

£44,417.75

Salary Tax

£3,486.00

Dividend Tax

£2,096.25

Total Tax

£5,582.25

Continue your plan

Useful next calculations

Related to this calculation

Use the Income Tax Calculator

Continue with the related tax & salary question this result raises.

Use the Self-Employed Tax Calculator

Continue with the related tax & salary question this result raises.

Rates & sources2026/27

2026/27 simple salary-and-dividends Income Tax estimate for England, Wales and Northern Ireland. It applies the £500 Dividend Allowance and Personal Allowance taper.

Dividend Allowance£500
Ordinary rate10.75%
Upper rate35.75%
Additional rate39.35%

Source: GOV.UK — Tax on dividends — source checked for 2026/27.

When to use this calculator

  • Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
  • When you want to compare employed, self-employed, or dividend-based income scenarios.
  • When you need a simple take-home estimate before running payroll or filing returns.
  • When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
  • When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.

Worked example: £30k salary plus £20k dividends

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Salary above PA

£17,430

Dividends

£20,000

Less dividend allowance

£500

Taxable dividends

£19,500

Basic-rate dividend band remaining (£50,270 − £30,000)

£20,270

£19,500 × 10.75%

£2,096

Total dividend tax

£2,096

This stays in the basic-rate dividend band. With the salary unchanged, dividend income above roughly £20,770 would start using the higher-rate band; that is not a recommendation to time or alter payouts.

How to read your results

Total Net Income

This is the headline outcome of the calculation, but it is most useful when read alongside the supporting metrics below it rather than in isolation. Try changing one input at a time and watching how this total moves to understand which driver has the biggest impact.

Salary Tax

Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.

Dividend Tax

Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.

Total Tax

Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.

Method & assumptionsAuthoritative sources

This calculator estimates 2026/27 UK Income Tax on a simple combination of employment salary and dividends. It applies available Personal Allowance to salary first, tapers that allowance above £100,000 of total income, then stacks taxable dividends into the remaining Income Tax bands. The £500 Dividend Allowance is applied as a 0% dividend band.

It is for England, Wales and Northern Ireland only. It deliberately excludes National Insurance, Corporation Tax, pension and Gift Aid band extensions, savings income, benefits, share schemes, payments on account and a complete Self Assessment calculation. Scottish non-dividend income bands can change the result. Dividends inside an ISA or pension are outside this calculation; verify important decisions with HMRC or a qualified adviser.

Common mistakes

  • !Entering gross income when you really want take-home pay, or vice versa.
  • !Ignoring pension contributions, deductions, or local tax rules that change the result.
  • !Comparing monthly and annual figures without standardising them first.
  • !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
  • !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.

What to do next

  • Check the same scenario with related pay or deduction calculators to see the full picture.
  • Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
  • Read the related guides below if you are choosing between multiple income or deduction options.
  • If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
  • Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.

Go deeper — 2 guides reference this calculator

Frequently asked

Dividend tax is paid on income received as dividends from shares or company ownership. In the UK, dividend income above the available Personal Allowance and annual £500 Dividend Allowance can be taxable. This applies to investors and company directors who receive dividends.

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