Enter your dividend income and pick your income tax band to see your 2025/26 UK dividend tax and what you keep after the £500 allowance.
How UK dividend tax works in 2025/26
The first £500 of dividends is tax-free. Above that, the rate depends on your income tax band because dividends sit on top of your other income.
Worked example. A higher-rate taxpayer with £10,000 of dividends pays tax on £10,000 - £500 = £9,500 at 33.75%, which is £3,206.25.
The rates
- Basic rate: 8.75%
- Higher rate: 33.75%
- Additional rate: 39.35%
Pick the band your total income falls in. Because a single band is applied here, dividends that straddle two bands will differ slightly from your real bill.
Source: gov.uk tax on dividends. This is an estimate, not tax advice.
Frequently asked questions
What is the dividend allowance for 2025/26?
The first £500 of dividend income is tax-free. Dividends above that are taxed at 8.75% at the basic rate, 33.75% at the higher rate, and 39.35% at the additional rate.
Which band do I pick?
Pick the band your total taxable income falls in, because dividends stack on top of your other income. This calculator applies a single band you choose. If your dividends straddle two bands your real tax splits across both, so treat the result as an estimate.