Dividend Tax Calculator UK — 2026/27
Stack dividends above salary and other non-savings income, then see the £500 dividend allowance, 10.75%, 35.75% and 39.35% slices. Add relief-at-source pension and Gift Aid payments to audit adjusted net income, Personal Allowance and band extensions.
Published by GrowThenDraw Editorial Team · Editorial policy · Methodology & sources
Current inputs versus plan
| Measure | Current | After plan |
|---|---|---|
| Net planned pension | £0.00 | £0.00 |
| Adjusted net income | £60,000.00 | £60,000.00 |
| Personal Allowance | £12,570.00 | £12,570.00 |
| Extra tax caused by dividends | £3,396.25 | £3,396.25 |
| Total Income Tax | £10,882.25 | £10,882.25 |
Calculation audit
Every pound of the dividend is assigned to Personal Allowance, the 0% amount or a taxed dividend band.
| Step | Amount | Rate | Tax |
|---|---|---|---|
| Inside Personal Allowance | £0.00 | 0% | £0.00 |
| Dividend nil-rate amount | £500.00 | 0% | £0.00 |
| Dividend ordinary-rate slice | £0.00 | 10.75% | £0.00 |
| Dividend upper-rate slice | £9,500.00 | 35.75% | £3,396.25 |
| Dividend additional-rate slice | £0.00 | 39.35% | £0.00 |
| Non-savings Income Tax | £37,430.00 | Band calculation | £7,486.00 |
| Total Income Tax with dividends | £60,000.00 | Combined | £10,882.25 |
| Total Income Tax without dividends | £50,000.00 | Comparison | £7,486.00 |
Compare pension tax relief
Translate the mathematical target into relief at source, net pay or salary sacrifice.
Audit annual allowance
Test taper, MPAA and expiring carry forward before planning pension input.
Calculate Child Benefit charge
Use the adjusted-net-income worksheet for both partners and the 2026/27 charge.
The dividend allowance is a 0% rate, not extra band space
For 2026/27, the first £500 of taxable dividend income is charged at the dividend nil rate. That £500 still occupies whichever tax band it falls inside. If non-savings income has almost used the basic-rate band, the allowance can use the last basic-rate space while the next pound of dividend is charged at the upper rate.
This calculator keeps the full dividend in the stacking calculation, applies the 0% amount to the lowest dividend slice and shows the remaining amounts at each dividend rate. It does not simply subtract £500 and stack what is left.
Dividends can increase tax outside the dividend-rate rows
Adjusted net income above £100,000 reduces the standard Personal Allowance by £1 for every £2 of excess income. A dividend can therefore create direct dividend tax and remove allowance that was sheltering salary, pension, property or other non-savings income.
The main result compares total Income Tax with and without the entered dividend while holding relief inputs constant. The calculation audit separately shows tax charged directly at dividend rates and Personal Allowance lost because the dividend was added.
Relief-at-source pensions and Gift Aid affect two parts of the calculation
A net relief-at-source pension payment or qualifying Gift Aid donation is grossed up at the basic rate. The gross amount can reduce adjusted net income and extend relevant tax-band limits. Those are distinct effects, and both can change the final dividend position.
The optional plan comparison treats an extra pension amount as relief at source. It does not prove that the contribution is affordable, accepted by a scheme, within relevant UK earnings or inside the annual allowance. Use the connected pension tools before acting.
Scottish salary rates and UK dividend rates stay separate
Scottish Income Tax rates apply to non-savings and non-dividend income for Scottish taxpayers. Dividend income is still charged at the UK dividend ordinary, upper and additional rates, so the tool calculates the two parts separately before adding them.
The Scotland option is an annual estimate for the supported income types. It excludes savings interest, tax-code adjustments, Marriage Allowance, tax reducers and other return-specific items that can change an HMRC calculation.
Frequently asked questions
What are the UK dividend tax rates for 2026/27?
Above any available Personal Allowance and the £500 dividend nil-rate amount, dividends are charged at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band for 2026/27.
Do dividends inside an ISA go in the calculator?
No. GOV.UK states that ISA dividends are not charged to dividend tax. Enter only dividends outside ISAs that belong in this individual UK estimate.
Why is extra tax caused by dividends higher than direct dividend tax?
If dividends push adjusted net income above £100,000, they can reduce the Personal Allowance. The lost allowance can expose more non-dividend income to tax, so the total extra liability can exceed the rows charged at dividend rates.
Does a £400 dividend use all of the £500 dividend allowance?
Only taxable dividend income uses the dividend nil-rate amount. If the Personal Allowance covers the dividend, none of the £500 is needed. Otherwise up to £400 would be charged at the 0% dividend rate in that example.
Does the pension planning target prove I can contribute that amount?
No. It is a mathematical tax target only. Relevant UK earnings, annual allowance, taper, MPAA, carry forward, scheme rules and affordability need separate checks.
Can a company director use this for salary versus dividends?
The calculator can estimate the individual's Income Tax on entered non-savings income and dividends. It does not calculate company Corporation Tax, employer or employee National Insurance, IR35 or the complete cost of extracting profits.
Rules and methodology verified 3 September 2026 against official UK sources:
- GOV.UK: 2026/27 Income Tax rates and Personal Allowance
- GOV.UK: dividend rates, £500 amount and ISA treatment
- HMRC SAIM1090: non-savings, savings and dividend stacking order
- HMRC SAIM1080: dividend allowance as a nil rate
- HMRC: adjusted net income and grossed reliefs
- HMRC PTM056120: UK and Scottish rate-limit extensions
- Finance Act 2026: enacted 2026/27 dividend-rate changes
Scope: one 2026/27 tax year; an individual UK taxpayer; entered non-savings income and dividends outside ISAs; tapered Personal Allowance; UK-wide dividend bands; Scottish or rest-of-UK non-savings rates; entered qualifying relief-at-source pension and Gift Aid gross-up.
Excludes savings income, foreign tax credits and FIG/remittance treatment, trusts and estates, company Corporation Tax, salary-versus-dividend extraction, NI and IR35, Marriage Allowance, Blind Person's Allowance, losses, tax reducers, Gift Aid eligibility and sufficient-tax checks, pension earnings and annual-allowance tests, Self Assessment rounding, PAYE codes and personalised advice. Educational estimate only.