Tax on £25,000 Dividends UK 2026/27
Gross dividends: £25,000. After dividend tax you keep £23,956 — assuming no other taxable income (add salary below to stack).
Last updated · Tax year 2026/27
| Gross dividends | £25,000 |
|---|---|
| Dividend tax | −£1,044 |
| Net dividend | £23,956 |
Band breakdown
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Allowance | £500 | 0.00% | £0 |
| Basic rate | £11,930 | 8.75% | £1,044 |
Take-home pay
£23,956
4.2% effective tax rate Income Tax plus employee National Insurance as a percentage of your gross salary. Excludes pension, student loan, and HICBC.
- Monthly
- £1,996
- Weekly
- £461
- Daily
- £92
- Hourly
- £12.29
Your salary in context
ONS · HMRC · CPI
-
Net dividend
After UK dividend tax you keep £23,956 from the £25,000 gross — an effective rate of 4.2%.
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Dividend allowance
£500 of your dividends fall within the £500 tax-free dividend allowance.
-
Standalone dividend
With no other income, Personal Allowance (£12,570) absorbs the first chunk of your dividend before the allowance and bands apply.
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Taxed at Basic rate
£11930 of dividends at 8.75% = £1,044.
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Tax-free via ISA
Dividends held inside a Stocks & Shares ISA are entirely free of UK dividend tax. 2026/27 annual allowance: £20,000.
Frequently asked questions
- What is the dividend allowance in 2026/27?
- £500. It was £1,000 in 2023/24 and halved to £500 from April 2024; unchanged for 2026/27. Dividends within the allowance are tax-free regardless of your other income.
- What rate of tax do I pay on dividends?
- Dividends above the allowance are taxed based on the income-tax band they fall into: 8.75% (basic), 33.75% (higher), 39.35% (additional). These are UK-wide — Scotland does not set its own dividend rates.
- How do dividends interact with my salary?
- Your non-dividend income (salary, self-employed profit, etc.) is stacked first and uses Personal Allowance. Dividends sit on top, so the band that applies depends on your total income.
- Are dividends from ISAs or pensions taxed?
- No — dividends received inside an ISA or pension wrapper are entirely tax-free. This calculator is for unwrapped dividends from company shares held in your own name (e.g. limited-company director's distributions).
- Does this cover Scottish taxpayers?
- Yes — but note that dividend tax rates and bands are set UK-wide, not by Holyrood. Scottish income-tax bands only apply to non-dividend income.