UK Dividend Tax Calculator 2025

Calculate how much dividend tax you need to pay for the 2025–26 tax year. Includes dividend allowance and all UK tax bands using the latest HMRC rules.

UK Dividend Tax Calculator

Estimate how much tax you’ll pay on your salary and dividends for the 2025/26 tax year.

Options

For illustration only — not financial advice.

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Total Tax Payable £0.00
Net Income £0.00
Effective Tax Rate 0%
Breakdown Amount (£)
Income Tax (on Salary) 0.00
Dividend Tax 0.00
Total Tax 0.00

 

Dividend Tax Rates 2025–26

Tax Band Income Range Dividend Tax Rate
Dividend Allowance £0 – £1,000 0%
Basic Rate £12,571 – £50,270 8.75%
Higher Rate £50,271 – £125,140 33.75%
Additional Rate Over £125,140 39.35%

Dividend income is taxed separately from salary and savings income.

How Dividend Tax Works

Dividend tax applies to income you receive from shares in UK companies, including dividends paid from your own limited company. Dividend income has its own tax rates and is calculated after your personal allowance and salary income are considered.

  • Dividend Allowance: The first £1,000 of dividend income is tax-free.
  • Basic Rate: 8.75% on dividends in the basic tax band.
  • Higher Rate: 33.75% on dividends in the higher tax band.
  • Additional Rate: 39.35% on income above £125,140.

This calculator applies all bands automatically based on your salary + dividend income.

Dividend Tax Examples

£5,000 Dividends
  • £1,000 tax-free allowance
  • Taxable: £4,000
  • Tax: £350
£25,000 Dividends
  • Taxable: £24,000
  • Mostly basic rate
  • Tax: ~£2,100
£60,000 Dividends
  • Taxable: £59,000
  • Mix of higher + additional rate
  • Tax: ~£17,000

Frequently Asked Questions

Yes — dividends from your company count as personal taxable income.

No — dividends are paid from profits after Corporation Tax has already been deducted.

This UK Dividend Tax Calculator uses HMRC’s official 2025–26 dividend tax bands and allowance to provide accurate estimates of your total dividend tax bill.