Tax on £5,000 Dividends UK 2026/27

Gross dividends: £5,000. After dividend tax you keep £5,000 — assuming no other taxable income (add salary below to stack).

Last updated · Tax year 2026/27

£
Other income
£
Gross dividends £5,000
Dividend tax −£0
Net dividend £5,000

Take-home pay

£5,000

0.0% effective tax rate

Monthly
£417
Weekly
£96
Daily
£19
Hourly
£2.56

Your salary in context

ONS · HMRC · CPI

  • Net dividend

    After UK dividend tax you keep £5,000 from the £5,000 gross — an effective rate of 0.0%.

  • Standalone dividend

    With no other income, Personal Allowance (£12,570) absorbs the first chunk of your dividend before the allowance and bands apply.

  • Tax-free via ISA

    Dividends held inside a Stocks & Shares ISA are entirely free of UK dividend tax. 2026/27 annual allowance: £20,000.

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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.