Dividend Tax Calculator 2026/27: The New 10.75% and 35.75% Rates
Dividend tax on top of salary, rent and other income with the £500 allowance, in the order HMRC applies it — for company directors and property-company landlords.
The short answer
Dividend tax for 2026/27, with the rates that rose in April 2026: 10.75% in the basic band, 35.75% in the higher band and 39.35% above, after a £500 allowance — worked out on top of your salary and any other income, as HMRC does.
Your dividend tax
Dividends taxed after other income; UK dividend bands apply in Scotland too. Estimate, not advice.
How dividends are taxed in 2026/27
Dividends are the last slice of income. Your salary, rent and other non-savings income use the personal allowance and fill the bands first; the dividends then start wherever that leaves off. The first £500 of dividends is tax-free (the dividend allowance, cut from £1,000 in April 2024), and the rest is taxed at the dividend rate of the band it lands in. From 6 April 2026 the ordinary and upper rates rose by 2 percentage points to 10.75% and 35.75%; the additional rate stayed at 39.35%. Dividend bands are UK-wide, so a Scottish director uses the £37,700 and £125,140 thresholds for dividends even though their salary is taxed on Scottish bands.
Director's salary plus dividends
The classic small-company mix is a salary at the £12,570 personal allowance (no income tax, and above the £6,708 lower earnings limit so the year counts for State Pension) with the rest as dividends. At that salary, dividends up to £37,700 are taxed at 10.75% after the £500 allowance — £4,000 on £37,700 of dividends — and the company has already paid corporation tax at 19% to 25% on the profit they came from. Whether the combination beats a larger salary depends on employer's National Insurance at 15% above £5,000 and the corporation tax band; the limited company calculator runs the full comparison for a property company.
Dividends and rental income
Landlords who hold property in a company take profits out as dividends, so the rent is taxed twice — corporation tax inside the company, then dividend tax on extraction — which is the trade-off against Section 24 relief restrictions on personally held property. Enter the dividends here and any personally held rent in the other-income box to see the combined position; the incorporation guide covers the stamp duty and capital gains cost of moving.
Sources
The official figures every number on this page is computed from; the site is rebuilt whenever they change.
- HMRC — Rates and thresholds for employers 2026 to 2027 — personal allowance, PAYE bands (England, Wales, Scotland), Class 1 National Insurance thresholds and rates, student loan thresholds; read 12 September 2026
- GOV.UK — Income Tax rates and Personal Allowances — allowance taper above £100,000
- GOV.UK — Repaying your student loan: how much you repay — plan thresholds and 9% / 6% rates
Quick answers
10.75% in the basic-rate band, 35.75% in the higher band and 39.35% in the additional band, after a £500 dividend allowance. The lower two rates rose by 2 points on 6 April 2026.
No. Dividends carry income tax only, which is why company owners pay themselves partly in dividends.
Yes, if it is not already used by salary or other income; the allowance is set against non-savings income first.
No. Dividend rates and bands are reserved to the UK Parliament and are the same everywhere.
No — through Self Assessment, or by a tax-code adjustment for small amounts, by 31 January after the tax year.