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This calculator is kept on the site as a quick utility, but it is not the focus of IsMyTaxDigital. If you came here for MTD, the right starting point is the MTD eligibility checker.
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UK Dividend Tax Calculator (2026-27)

Enter your other annual income and total dividend income to estimate UK dividend tax across the basic, higher, and additional rate bands.

Tax year: 2026-27 · Last reviewed: 30 April 2026 · Source: GOV.UK tax on dividends

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Your estimate

Dividend Tax estimate

Estimated Dividend Tax

£1,236

On £12,000 of dividends

Of your dividend income:

You keep89.7%
Dividend Tax10.3%
Other annual income£38,000
Dividend income£12,000
Dividend allowance£500
Dividends taxed at basic rate£11,500
Dividends taxed at higher rate£0
Dividends taxed at additional rate£0
Estimated Dividend Tax£1,236

This assumes dividends sit on top of other income and does not handle ISA dividends or more complex allowance interactions. This calculator provides a broad estimate only and is not tax advice.

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What this calculator does

It estimates UK dividend tax by placing your dividend income on top of your other taxable income for the year. The result applies the dividend allowance first, then estimates how much of the remaining dividends fall into the basic, higher, or additional rate bands.

Dividend tax is different from salary tax

Salary is taxed through PAYE or Self Assessment using income tax rates and National Insurance rules. Dividends use separate dividend tax rates and do not have employee National Insurance, but they still sit within your overall income bands. That is why this calculator asks for other taxable income as well as dividends.

How the dividend allowance works

The dividend allowance shelters a small amount of dividend income from dividend tax, but it does not remove that income from the tax band calculation. Dividends above the allowance are taxed at the dividend rate for the band they fall into after your salary, trading profit, rental income, pension, or other taxable income has been counted.

What it does not include

It does not calculate Corporation Tax, company profit, director loan charges, pension planning, Scottish income tax interactions, payments on account, or whether dividends were lawfully declared from company reserves. Dividends inside a Stocks & Shares ISA should not be entered because they are tax-free.

When to seek advice

Use the estimate as a planning check, not as personal tax advice. Speak to an accountant if you are deciding between salary and dividends, have several income sources, crossed into a new tax band, or need to make payments on account. If you also have sole-trader or property income, the MTD checker can help you check whether Making Tax Digital for Income Tax may apply separately.

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