Investment Income Tax Calculator 2025/26

Estimate how much UK tax you’ll pay on investment income for 2025/26. Includes dividends, interest, fund income, REIT distributions and allowance rules.

Investment Income Tax Calculator (2025/26)

Estimate how much tax you’ll pay on dividends and savings interest in the 2025/26 tax year.

Estimates only — based on 2025/26 HMRC investment tax rates.

Ready
Description Amount (£)
Dividend Allowance £0.00
Tax-Free Savings Allowance (PSA) £0.00
Taxable Dividends £0.00
Taxable Interest £0.00
Tax on Dividends £0.00
Tax on Interest £0.00
Total Tax Due £0.00

 

Investment Tax Rates & Allowances 2025/26

Dividend Tax Rates
Tax Band Rate
Dividend Allowance £1,000 tax-free
Basic Rate 8.75%
Higher Rate 33.75%
Additional Rate 39.35%

Full dividend tax rates are published on GOV.UK – Tax on dividends. Use our dedicated Dividend Tax Calculator for a detailed dividend-only breakdown.

Tax on Interest (Non-ISA)
Basic Rate 20%
Higher Rate 40%
Additional Rate 45%

Interest earned outside an ISA is taxable. Our Savings Interest Tax Calculator covers this in full, including the starting rate for savings.

Personal Savings Allowance (PSA)
Basic Rate Taxpayer £1,000
Higher Rate Taxpayer £500
Additional Rate Taxpayer No allowance

See GOV.UK – Tax-free savings allowances for full PSA rules.

Capital Gains Tax (CGT) Basics
Capital Gains Allowance £3,000
CGT Rate (basic rate) 10% (18% for property)
CGT Rate (higher/additional) 20% (24% for property)

For a full CGT calculation including property disposals, use our Capital Gains Tax Calculator. HMRC rates and allowances are detailed on GOV.UK – Capital Gains Tax rates.

ISA and pension investments remain completely tax-free.

How Investment Tax Works in 2025/26

Investment income covers a wide range of earnings including dividends, interest, capital gains, fund distributions and REIT payments. Each category is taxed differently and has separate allowances.

This calculator applies all HMRC investment, savings and dividend tax rules for 2025/26.

Investment Income Tax Examples (2025/26)

Dividends: £2,000 (Basic Rate)
  • £1,000 tax-free
  • £1,000 taxed @ 8.75%
  • Tax: £87.50
  • Net income: £1,912.50
Savings Interest: £3,000 (Higher Rate)
  • £500 PSA
  • £2,500 taxed @ 40%
  • Tax: £1,000
  • Net income: £2,000
Capital Gain: £10,000
  • £3,000 CGT allowance
  • £7,000 taxable
  • Tax @ 10% (basic): £700
  • Tax @ 20% (higher): £1,400

If your investments are held in a company, see our Corporation Tax Calculator and Small Business Tax Calculator.

Frequently Asked Questions

Yes — but the first £1,000 of dividend income is tax-free via the Dividend Allowance. After that, dividends are taxed at 8.75%, 33.75% or 39.35% depending on your tax band. Use our Dividend Tax Calculator for a precise figure.

Banks automatically report your interest to HMRC. If tax is due, it is usually collected through your tax code or Self Assessment.

Yes — all interest, dividends and capital gains earned inside a Stocks and Shares ISA or Cash ISA are completely exempt from tax and do not use any of your allowances. The annual ISA subscription limit for 2025/26 is £20,000.

Investment income is stacked on top of your other income (salary, pension, self-employment) and can push you into a higher tax band, increasing the rate you pay on dividends and interest. Use our Income Tax Calculator to model the effect, or the Self-Employment Tax Calculator if you have freelance income alongside investments. HMRC explains the ordering rules at GOV.UK – Investment income.

This Investment Income Tax Calculator applies HMRC 2025/26 rules for dividends, savings interest, REIT distributions and capital gains allowances. Related tools: Dividend Tax Calculator, Capital Gains Tax Calculator, Savings Interest Tax Calculator.