How to use this calculator
- Enter the dividends you expect to receive in the 2026 to 2027 tax year (6 April 2026 to 5 April 2027).
- Enter your other income, such as a director's salary, a job, self-employed profit or a pension.
- Choose where you pay Income Tax. Dividends are taxed at the same rates across the UK, but Scotland's rates apply to your other income.
- Read the tax on your dividends, and how much falls in each band.
How it's calculated
Worked example
Jess runs her own limited company. In 2026 to 2027 she pays herself a salary of £12,570 and takes £40,000 in dividends. She lives in England.
Jess pays about £4,821.25 in dividend tax, an effective rate of 12.05% on her dividends, and keeps £35,178.75.
What this calculator doesn't cover
- Savings interest and its allowances, capital gains, and other income such as rent.
- Pension contributions, Gift Aid and Marriage Allowance, which can change your bands or allowance.
- Dividends held in an ISA, which are tax-free and don't need to be entered.
- National Insurance on your salary, and Corporation Tax your company pays before paying dividends. Our sole trader vs limited company calculator includes those.
Frequently asked questions
Does the £500 dividend allowance reduce my income?
No. The first £500 of dividends is taxed at 0%, but it still counts as income and uses up part of your basic or higher rate band. That's why the example's basic rate band holds £37,200 of taxed dividends, not £37,700.
I live in Scotland. Are my dividends taxed differently?
No. Dividend tax rates and bands are the same across the UK. Scottish Income Tax rates apply only to your other income, such as a salary.
How do I pay dividend tax?
GOV.UK explains how to report dividends, including when you need to fill in a Self Assessment tax return. See the official tax on dividends page.
Sources (2026 to 2027): GOV.UK: tax on dividends, GOV.UK: Income Tax rates and Personal Allowance, GOV.UK: Scottish Income Tax. Figures checked 28 September 2026.