Dividend Tax Calculator
Estimate the UK tax due on your dividends.
For 2025/26 the first £500 of dividends is tax-free. Above that, higher rate taxpayers pay 33.75%. Your actual band depends on your total income; dividends are treated as the top slice. Dividends held inside an ISA or pension are tax-free. This is a simplified estimate, not tax advice.
About this calculator
Dividends you receive outside an ISA or pension are taxed above a tax-free dividend allowance of £500 (2025/26). The rate depends on your income tax band: 8.75% for basic-rate, 33.75% for higher-rate, and 39.35% for additional-rate taxpayers. This calculator applies the allowance and your band to estimate the tax due and what you keep.
Dividends are treated as the top slice of your income, so where you sit can depend on your other earnings.
Frequently asked questions
What is the dividend allowance?
For 2025/26 the first £500 of dividend income is tax-free, regardless of your tax band. It has fallen sharply in recent years from £5,000 in 2017/18.
How do I avoid dividend tax?
Hold the shares inside a Stocks & Shares ISA or a pension — dividends there are entirely tax-free and don't count towards the allowance.
Related calculators
These calculators are for general information and planning only. They use the assumptions you enter and do not constitute financial, tax, or investment advice. Tax figures are simplified estimates for the stated tax year. Returns are not guaranteed; verify figures independently before making decisions.