Dividend Tax Calculator 2026/27
Enter your PAYE salary (if any) and your dividend income to see how much dividend tax you owe and what your combined take-home pay will be. The calculator accounts for your Personal Allowance, the £500 Dividend Allowance, and the correct marginal rates.
Enter 0 if you only receive dividends
Dividend tax breakdown
| Total income (salary + dividends) | £52,570 |
| Personal Allowance | £12,570 |
| Income tax on salary | −£0 |
| National Insurance on salary | −£0 |
| Dividend Allowance used | £500 (tax-free) |
| £37,700 at Basic rate (8.75%) | −£3,299 |
| £1,800 at Higher rate (33.75%) | −£608 |
| Total dividend tax | −£3,906 |
| Take-home pay | £48,664 |
You keep £48,664 of £52,570 total income. Dividend tax: £3,906 on £40,000 dividends.
Share this calculation
How dividend tax works
Dividends are taxed after your other income (salary, self-employed profits). The first £500 of dividend income is tax-free (the Dividend Allowance). After that, the rate depends on which tax band the dividends fall into:
- Basic rate band: 8.75%
- Higher rate band: 33.75%
- Additional rate band: 39.35%
Dividends do not attract National Insurance. If you pay yourself a small salary and take the rest as dividends, you can significantly reduce your overall tax bill — though this only works through a limited company.
See our self-employed tax guide for more on structuring your income.