Dividend Tax Calculator
Calculate tax on dividend income for 2025/26 tax year
Last updated: April 2025 · 2025/26 tax rates
Your Income
£
From shares, funds, or company
£
Salary, pensions, rental, etc.
Scottish taxpayer?
Different income tax bands
2025/26 Rates
Dividend Allowance£500
Basic Rate (8.75%)Up to £50,270
Higher Rate (33.75%)£50,270 - £125,140
Additional (39.35%)Over £125,140
Total Dividend Tax
£831
On £10,000 dividends
Effective Rate
8.3%
Gross Dividends
£10,000
Tax Due
£831
Net Income
£9,169
Tax Calculation Breakdown
Total Income£40,000
Personal Allowance Used-£10,000
Dividend Allowance Used-£0
Taxable Dividends£9,500
Tax by Band
Basic Rate (8.75%)£9,500
Tax:£831
Key Information
Marginal Rate
8.75%
Tax on next £1 of dividends
Personal Allowance
£12,570
Full allowance
Understanding Dividend Tax
Definition
Dividends are payments made by companies to shareholders from their profits. They're a way of distributing profits to investors who own shares in the company.
Sources of Dividends
- • Shares in UK or foreign companies
- • Investment funds/unit trusts
- • Open-ended investment companies (OEICs)
- • Your own limited company
Tax-Free Dividends
- • Dividends in ISAs
- • Dividends in pensions
- • First £500 (dividend allowance)
- • Amount within Personal Allowance
Tax year 2025/26 (6 April 2025 - 5 April 2026) | Dividend Allowance: £500 | Rates: 8.75%, 33.75%, 39.35%