The rates from 6 April 2026
10.75% in the basic rate band, 35.75% in the higher, and 39.35% in the additional. Before 6 April 2026 they were 8.75%, 33.75% and 39.35%.
Free dividend tax calculator
How much tax will you pay on your dividends?
The first £500 of dividends is taxed at nothing; above it, 10.75%, 35.75% or 39.35% from 6 April 2026, depending on your other income. Enter your dividends and your salary, and see the tax, band by band.
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The rates
On top of your other income.
The £500 allowance
The first £500 of dividends is taxed at nothing - but it still uses up part of your band, so it can push the rest into a higher one.
Your other income first
Your salary or other income uses your personal allowance and band first, and dividends sit on top of it. Dividends in an ISA are not taxed.
HMRC's own words: Tax on dividends. A director deciding between salary and dividends? Work out the company's tax too.
What Stoneledger does
What the company can pay, and the tax on taking it.
- What is available to distribute, since the books began, not just this year.
- Salary and dividends side by side, with the tax on each.
- What to keep back for the tax, month by month.
A director's dividends, and the tax on them.
What the company can afford to pay, and what taking it costs you.