Tax on Dividends UK (2026/27): Per-Amount Worked Examples
UK dividend tax 2026/27: £500 allowance, then 10.75% / 35.75% / 39.35% by band. Dividends sit on top of other income.
In 2026/27 dividends that fall within your Personal Allowance are not taxed, and the next £500 is covered by the Dividend Allowance (taxed at 0%). Dividends above that are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band (GOV.UK: Tax on dividends). Dividends are treated as the top slice of your income, so which band they fall in depends on your other income. The allowance still uses up band space: dividends it covers count towards your total income.
The worked-example page below shows one dividend amount at four salary levels: £15,000, £35,000, £70,000 and £130,000. For any other amount, use the dividend tax calculator.