UK Dividend Tax Calculator
Calculate UK tax on dividends and savings interest for 2026/27, including the allowances.
About the UK Dividend Tax Calculator
Income is taxed in a set order: earnings and pensions first, then savings interest, then dividends. Savings get a 0% starting rate band of up to £5,000 (reduced by non-savings income above the Personal Allowance) and a Personal Savings Allowance of £1,000 for basic-rate taxpayers, £500 for higher-rate and nothing for additional-rate.
From 6 April 2026, dividend tax rates rose to 10.75% (basic) and 35.75% (higher); the additional rate stays 39.35%. The first £500 of dividends is tax-free. Savings rates are due to rise by 2 points from April 2027. ISAs and pensions are tax-free and not counted here.
The formula
Tax = non-savings tax + savings tax (after starting rate and PSA) + dividend tax (after £500 allowance)
Worked example
Example: Tax on savings and dividends = £1,368.75
- Inputs: Salary, pension and other non-savings income: £33,000; Savings interest: £2,200; Dividends: £11,000.
- Formula: Tax = non-savings tax + savings tax (after starting rate and PSA) + dividend tax (after £500 allowance)
- Result: Tax on savings and dividends = £1,368.75
Questions people ask
Are ISA dividends taxed?
No.
Do I need Self Assessment?
If dividends exceed £10,000, or tax is due that can't be collected through PAYE.
Sources
The rules and rates this calculator uses come from the official pages below. Its results are estimates, not an official determination, and rules change, so check the latest figures there before you act on them.