Dividend Tax 2025/26
Accurately estimate your UK dividend tax liability for the upcoming tax year. Factors in allowances, personal allowance taper, and marginal tax bands.
Calculate Your Dividend Tax
Enter your expected salary and dividend income for the 2025/26 tax year to see a detailed breakdown of your tax-free allowances and marginal tax liabilities.
Income Parameters
Enter your projected annual income for 2025/26
Tax Liability Estimate
2025/26 Dividend Tax Breakdown
2025/26 Dividend Tax Bands
Official HMRC dividend tax rates and thresholds for the 2025/26 tax year (6 April 2025 to 5 April 2026).
| Tax Band | Taxable Income Threshold | Dividend Tax Rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Dividend Allowance | First £500 of dividends | 0% |
| Basic Rate | £12,571 to £50,270 | 8.75% |
| Higher Rate | £50,271 to £125,140 | 33.75% |
| Additional Rate | Over £125,140 | 39.35% |
Dividend Tax FAQ
Everything you need to know about UK dividend taxation, allowances, and reporting requirements for 2025/26.
The dividend allowance for the 2025/26 tax year is £500. This means the first £500 of your dividend income is tax-free, regardless of your income tax band. Note that this still counts towards your overall income for determining your tax band.
For the 2025/26 tax year, the dividend tax rates are 8.75% for basic rate taxpayers, 33.75% for higher rate taxpayers, and 39.35% for additional rate taxpayers.
Your Personal Allowance (£12,570) is applied to your total income first. If your salary or other income is below this threshold, the remaining allowance can be used to cover your dividend income tax-free. However, the Personal Allowance is reduced by £1 for every £2 you earn over £100,000.
Yes. If your total dividend income exceeds your £500 dividend allowance, you must report it to HMRC. This is typically done through a Self Assessment tax return, or by contacting HMRC to have your tax code adjusted if you already file via PAYE.