Dividend tax calculator 2026/27
Enter your salary and dividend income to see your dividend tax bill for 2026/27, including the tax-free dividend allowance and the different dividend rates in each band.
Calculate your dividend tax →How dividends are taxed
Dividends are taxed after your other income, at lower rates than salary: 8.75% in the basic-rate band, 33.75% in the higher-rate band and 39.35% in the additional-rate band. A small dividend allowance is tax-free, and dividends attract no National Insurance.
This is why limited company directors often take a small salary plus dividends — the combination is typically more tax-efficient than salary alone.
Frequently asked questions
How much tax do I pay on dividends?
After the tax-free dividend allowance, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate) or 39.35% (additional rate), depending on which band the dividends fall into once stacked on top of your other income.
Do I pay National Insurance on dividends?
No. Dividends are exempt from National Insurance, which is one of the main reasons a salary-plus-dividends mix is tax-efficient for limited company directors.
Are dividends in an ISA taxable?
No. Dividends received inside a Stocks & Shares ISA are completely tax-free and do not count towards the dividend allowance.