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.

Ready
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

You may also want to check your overall tax position using the Income Tax Calculator, Self-Employment Tax Calculator, or Corporation Tax Calculator.

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. HMRC dividend tax guidance: Tax on Dividends.

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. For mixed income, you can use the PAYE Tax Calculator or Small Business Tax Calculator.

  • 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. For NI calculations, see the National Insurance Calculator.

Dividend Tax Examples

For broader planning, try our VAT Calculator or Loan Calculator.

£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 and additional rate
  • Tax: ~£17,000

Frequently Asked Questions

For company directors, you may also find our Corporation Tax Calculator useful to plan combined salary and dividend strategies.

Yes — dividends from your company count as personal taxable income. Learn more: HMRC Dividend Tax Guide.

No — dividends are paid from profits after Corporation Tax has already been deducted. See HMRC Corporation Tax overview: Corporation Tax Rules.

This UK Dividend Tax Calculator uses HMRC’s official 2025–26 dividend tax bands and allowance for accurate estimates. For mixed income scenarios, also try the PAYE Tax Calculator or Self-Employment Tax Calculator.