Dividend Tax Calculator (2026/27)
Calculate 2026/27 dividend tax on salary plus dividends using the £500 allowance and the new 10.75%/35.75%/39.35% rates after April 2026's 2pp rise.
2026/27 dividend tax rates rose 2 percentage points from 6 April 2026 (Autumn Budget 2025): basic rate 8.75% -> 10.75%, higher rate 33.75% -> 35.75%; additional rate unchanged at 39.35%. The £500 tax-free dividend allowance is unchanged. Band boundaries assume the dividend sits on top of other income already using the personal allowance and basic-rate band (the standard contractor-calculator convention) — i.e. flatRate.bands operate on taxable dividend income (after the £500 allowance is deducted), NOT on total income including salary.
Dividend tax after April 2026's rate rise — what you'll actually pay
From 6 April 2026, dividend tax rates rose by two percentage points at the Autumn Budget 2025: the basic rate moved from 8.75% to 10.75% and the higher rate from 33.75% to 35.75%, while the additional rate stayed at 39.35%. The £500 tax-free dividend allowance was left unchanged. For anyone drawing income as salary plus dividends from a limited company, that two-point rise is the single biggest change to their 2026/27 tax bill.
This calculator applies those new rates to your actual salary and dividend income, working out how much of your dividend sits in the basic, higher or additional-rate band once your salary has already used up part of your personal allowance and basic-rate band — the standard convention for how dividend tax is actually calculated, rather than treating dividends as a stand-alone pot of income.
How dividend tax is worked out
- Your salary and any other non-dividend income uses up your personal allowance and basic-rate band first
- Dividend income is then 'stacked' on top of that, with the first £500 tax-free under the dividend allowance
- Dividend income above the allowance is taxed at 10.75% while it falls within the basic-rate band (up to £50,270 of total income), 35.75% within the higher-rate band (up to £125,140), and 39.35% above that
- The calculator shows exactly how much of your dividend income falls into each band, rather than a single blended rate
