Estimate UK dividend tax after the dividend allowance, Personal Allowance and other taxable income assumptions.
Use this dividend tax calculator to estimate how dividends may be taxed after other taxable income, Personal Allowance and the 2026/27 dividend allowance are considered. It is a planning estimate only and does not decide Self Assessment, company accounts or investment tax treatment.
Change either figure. Other taxable income is what decides which band the dividends land in.
The dividend allowance is a 0% band, not an exemption: it still uses up part of the tax band it sits in. Other taxable income is what decides which band the dividends land in, which is why the same dividend is taxed differently for two people. Dividend rates are the same across the UK. On these figures the dividends fall in the basic rate at 10.75%.
| Dividend allowance | £500 |
|---|---|
| Allowance left for dividends | £0 |
| Dividends after Personal Allowance | £3,000 |
| Tax/source year | 2026/27 |
|---|---|
| Region | England/Wales/Northern Ireland |
| Tax code basis | 1257L where the page uses PAYE defaults |
| Pension basis | No pension deduction unless this example says otherwise |
| Student loan basis | No student loan unless selected in this example |
| What is not decided here | PayBreakdown does not decide payroll correctness, lender approval, benefit entitlement or employer compliance, and does not give regulated financial, mortgage, debt, tax, payroll or legal advice. |
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The figures on this page are worked from dividend tax, using the values below. Open the calculator if your example salary differs.
The calculator treats the dividend allowance as a 0% band, then places taxable dividends into the remaining Income Tax bands after other taxable income.
Self-employed, dividend and director estimates are planning models only. They do not replace Self Assessment, company accounts, payroll records, HMRC guidance or accountant advice.
This estimate is worked out on £35,000 annual gross. Change any of those and the take-home figure moves; pension method and student loan plan usually move it most. A payslip can differ from any calculator because payroll works pay period by pay period, so a tax-code change, a bonus, arrears or a refund can land in one month and not the next. See how each deduction is worked out.
It estimates dividend tax after other taxable income, Personal Allowance and the dividend allowance have been applied for the selected tax year.
The allowance taxes that slice at 0%, but it can still sit inside a tax band. The rest of the dividend can be taxed at the relevant dividend rates.
No. This is a planning estimate only and does not recommend dividends, salary levels, investments or company extraction decisions.
No. ISA dividends, company accounts, expenses, loans, VAT and accounting treatment are outside this calculator.
Last updated 2026-08-27. Checked by Sean Elsmore. Rates last checked against GOV.UK on 2026-08-07. Estimates are for planning and should be checked against official records where the decision matters.