Dividend Tax Calculator
Estimate how much tax you'll pay on dividend income - Updated for 2026/27
Work out your dividend tax with our online calculator
Use our free online dividend tax calculator to quickly work out how much tax you’ll pay on your share of your limited company’s profits.
Dividend payments aren’t taxed at source in the same way that wages are, so you’ll need to submit a Self Assessment tax return to report them along with any other untaxed earnings you receive. You won’t need to pay National Insurance on your dividend income though, so it’s important you record them separately!
The rate of tax you’ll pay depends on the total amount you earn during the tax year from any source – such as a director’s salary. Working out your tax bill also considers any tax allowances you’re entitled to, such as the Personal Allowance and Dividend Allowance.
Our calculator shows how much dividend tax you’ll need to pay based on the rates and allowances in force for the tax year you select, taking into account any other income you receive during the year.
Read our guide to working out dividend tax to learn more about how our calculator works.
Why can't I use the dividend tax calculator past £100,000?
We’ve capped the calculator at £100,000 because it can get a bit complicated from here! This is because the tax-free personal allowance starts to taper off if your earnings go over this threshold.
For example, taking dividends increases the total amount of income you receive, which could mean you use up more of your personal allowance or that you hit the threshold where your allowance starts to taper. This can all affect the rate and amount of tax you need to pay on your dividends – especially if you have other sources of income too. With lots of variables, we look at tax-efficiency on a case-by-case basis, so please chat to your accountant or reach out to Ask an Accountant for more advice.
FAQs
This is the total amount of dividends you can receive in a tax year without paying any tax on them. You’re entitled to it even if you receive other types of income, and you can use it alongside the tax-free Personal Allowance. Our tax rates article explains how the allowances work together in more detail.
You won’t need to pay any National Insurance on the dividend income you receive, so make sure you keep detailed records of what you earn, and where from!
No, the amount of tax you pay is based on how much you earn during the tax year. You’ll normally pay tax on them by submitting a Self Assessment return after the tax year you’re reporting has ended.
That said, it’s usually better to take dividends at regular intervals rather than ad-hoc amounts at random points in the year.
No, you’ll only pay tax on dividends you actually declare. Some people use this to take a tactical approach. For instance, if the company profits are £50,000 in Year 1, and £10,000 in Year 2, the total profits over two years are £60,000.
Rather than paying a large dividend one year and a small one the next, you might decide to declare dividends of £30,000 per year, and your income will be under the basic rate tax threshold.
Tax efficiency depends on how much you earn and how you earn it, so this answer can vary depending on your circumstances. If you’re currently operating as a sole trader and want to explore what incorporating a limited company will mean for your tax bill, take a look at our free online tax calculator.
Looking for more information?
We have a comprehensive range of free resources available
Director’s Minutes and Dividend Vouchers Template
Claim your dividends using our minutes and vouchers template.
Salary & Dividends Guide for Directors
Avoid the confusion and learn the most efficient way of paying yourself from your company.
3 minutes
Limited Company Guide
Discover the deadlines and responsibilities you need to know about when operating as a limited company.
8 minutes
