Tax on Dividends Calculator

Estimate the tax on your investment income in United Kingdom.

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For Estimation Purposes Only

This calculator provides a simplified estimate and is not financial advice. Dividend tax rules can be complex. Consult with a qualified professional for accurate advice.

Understanding Dividend Tax in United Kingdom

The Dividend Allowance

For the 2025/2026 tax year, you can earn up to £500 in dividends completely tax-free. This is your Dividend Allowance. Our calculator automatically applies this before working out any tax due.

Taxed Based on Your Income Band

Dividend income is 'stacked' on top of your other income (like salary) to determine which tax band it falls into. The rates for dividends (8.75%, 33.75%, 39.35%) are lower than regular income tax rates.

Tax on Dividends Calculator

Enter Your Income Details

For Estimation Purposes Only

Understanding Dividend Tax in United Kingdom

The Dividend Allowance

Taxed Based on Your Income Band

Frequently Asked Questions

Do I pay tax on dividends inside an ISA or SIPP?

How do I actually pay the tax on my dividends?