Is this calculator “exact”? It’s deterministic using stated assumptions, but it won’t cover every edge case (e.g., special reliefs). Use it for planning and compare with official guidance for edge cases. Why do results change sharply at thresholds? Most UK taxes/charges are banded. Crossing a band can change the marginal rate applied to the next slice, which can look like a step-change in totals.

Dividend Tax Calculator (2026/27) | Sterling Calculators

Band	Amount	Rate	Tax
Basic	—	—	—
Higher	—	—	—
Additional	—	—	—

Band

Amount

Rate

Tax

Basic

—

Higher

—

Additional

—

Adjusted Net Income (ANI)	—
Dividend allowance used	—
Taxable non‑dividend income	—

Adjusted Net Income (ANI)

—

Dividend allowance used

—

Taxable non‑dividend income

—

About this calculator

Calculate UK dividend tax by stacking dividends on top of your other income after the Personal Allowance (including the £100k allowance taper). This tool estimates how much of your dividends fall into the basic, higher and additional rate bands and applies the dividend rates accordingly. It’s ideal for directors and investors planning how much to extract as dividends in the 2026/27 tax year (rUK/England & NI bands).

How the calculation works

We determine your Personal Allowance from adjusted net income, apply it to non‑dividend income first, then stack dividends on top. Dividends are allocated through the tax bands and taxed at the appropriate dividend rates after any dividend allowance where applicable.

FAQ

Do dividends use a different tax rate?

Yes—dividends have their own rates which depend on your tax band.

Does salary affect dividend tax?

Yes. Salary uses up your tax bands first, which can push dividends into higher rates.

Is this for Scotland?

This uses rUK/England & NI Income Tax banding for the non‑dividend portion; Scotland differs.

Does it include corporation tax?

No. This page estimates personal dividend tax. Use the director model for combined views.

Related calculators

Understanding your dividend tax result

This tool estimates personal dividend tax on annual dividends, applying the dividend allowance and banded dividend tax rates based on your taxable income position. It’s designed for planning and comparing scenarios.

Dividends stack on top of other taxable income for band allocation.
The Personal Allowance can be reduced when ANI exceeds £100k (taper).
Dividend tax is computed band-by-band using the remaining basic/higher bands.

Next steps

If you’re a company director, use Salary vs Dividend to include corporation tax + employer NI + personal taxes together.

Director modelling → Corporation tax →

FAQs

Do dividends reduce corporation tax?

No. This page models personal dividend tax only. Company profits and corporation tax are handled in the Salary vs Dividend and Corporation Tax tools.

Does this include Scottish/Welsh bands?

No—England/rUK simplified bands are used for consistency across the toolset.

Why can tax jump around £100k?

Because the Personal Allowance tapers above £100k, increasing the effective marginal rate.

Assumptions: England/rUK bands; annualised calculations; excludes student loans/benefits-in-kind unless stated. Tax core: /assets/tax-core.js.

UK Dividend Tax Calculator (Salary + Dividends)