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%
Tax on Interest (Non-ISA)
Basic Rate 20%
Higher Rate 40%
Additional Rate 45%
Personal Savings Allowance (PSA)
Basic Rate Taxpayer £1,000
Higher Rate Taxpayer £500
Additional Rate Taxpayer No allowance
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)

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.

  • Dividends: £1,000 tax-free then taxed by income band.
  • Interest: Personal Savings Allowance reduces or removes tax.
  • Capital Gains: £3,000 tax-free allowance for investment profits.
  • REIT distributions: Normally taxed as property income via tax deduction at source.
  • ISAs: All gains and income are fully tax-free.
  • All investment income counts towards your overall tax band.

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

Frequently Asked Questions

Yes — but the first £1,000 of dividend income is tax-free. After that, dividends are taxed at 8.75%, 33.75% or 39.35% depending on your tax band.

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

This Investment Income Tax Calculator applies HMRC 2025/26 rules for dividends, savings interest, REIT distributions and capital gains allowances.