Dividend Tax Calculator (2026/27)

Dividend tax rates for 2026/27

The dividend allowance is £500 — dividends above that are taxed at 8.75% in the basic-rate band, 33.75% in the higher-rate band and 39.35% in the additional-rate band. Dividends sit on top of other income when working out which band they fall into. The classic director structure of a £12,570 salary (using the full personal allowance, no income tax or employee NI) plus dividends remains tax-efficient, though corporation tax at up to 25% applies to company profits before dividends are paid. This is an estimate, not advice — speak to an accountant for planning.