Dividend tax calculator UK 2026/27
The first £500 is covered by the dividend allowance. The other £9,500 falls in the basic rate band and is taxed at 10.75%.
Income tax on your salary: £5,486.00 (England, Wales and Northern Ireland). Total tax £6,507.25.
Your dividends, band by band
| Band | Rate | Dividends in band | Tax |
|---|---|---|---|
| Covered by your personal allowance | 0% | £0.00 | £0.00 |
| Dividend allowance | 0% | £500.00 | £0.00 |
| Basic rate | 10.75% | £9,500.00 | £1,021.25 |
| Higher rate | 35.75% | £0.00 | £0.00 |
| Additional rate | 39.35% | £0.00 | £0.00 |
| Total | £10,000.00 | £1,021.25 |
Dividend rates for 2026/27
| Dividend allowance | £500 | 0% |
| Basic rate band | up to £50,270 of total income | 10.75% |
| Higher rate band | £50,271 to £125,140 | 35.75% |
| Additional rate | over £125,140 | 39.35% |
Quick answers
How much tax do I pay on £10,000 of dividends?
£1,021.25 in 2026/27 if your salary is £40,000: the first £500 is tax-free, the rest is taxed at 10.75%. With a £50,270 salary the same dividends cost £3,396.25, because they fall in the higher rate band at 35.75%.
Do dividends use my personal allowance?
Yes, if your other income has not used it up. With no salary, the first £12,570 of dividends is covered by the personal allowance, then £500 by the dividend allowance: £20,000 of dividends alone costs £744.98.
Are the rates the same in Scotland?
Yes. Dividends are taxed at the UK rates and bands wherever you live. Only the tax on your salary is different in Scotland; the income tax calculator shows that.
Sources: GOV.UK, tax on dividends; HMRC income tax rates and allowances (checked 1 Nov 2026); GOV.UK income tax rates (checked 31 Oct 2026).