UK Dividend Tax Calculator
Calculate your UK dividend tax for the 2025/26 or 2024/25 tax year. Enter your dividend income and other income to see your tax across each band, your effective rate, and the full breakdown.
Employment, self-employment, or pension income
Dividend Allowance
£500
Tax-free each year
Taxable Dividends
£9,500
After allowance
Dividend Tax
£1,021.25
Effective rate: 10.21%
| Band | Rate | Dividends in Band | Tax |
|---|---|---|---|
| Basic rate (10.75%) | 10.75% | £9,500 | £1,021.25 |
| Total | £9,500 | £1,021.25 | |
Frequently Asked Questions
What is the UK Dividend Allowance?
The Dividend Allowance is £500 for both the 2025/26 and 2024/25 tax years. This means the first £500 of dividend income you receive each year is tax-free, regardless of your other income or tax band.
What are the UK dividend tax rates?
Dividend tax rates for 2025/26 and 2024/25 are: 8.75% (Basic rate), 33.75% (Higher rate), and 39.35% (Additional rate). Dividends are taxed at these rates — lower than the equivalent income tax rates — because dividends are paid from company profits that have already been subject to Corporation Tax.
How does other income affect dividend tax?
Dividends are treated as the "top slice" of your income. Your Personal Allowance and other income (such as employment or self-employment earnings) fill the tax bands first. Dividends are then taxed in whatever band they fall into after other income has been accounted for. This means if your salary fills the basic rate band, your dividends will be taxed at the higher rate.