Dividend Tax Calculator

Paying yourself through dividends? Find out how much tax you’ll owe in 2025/26, including the £500 dividend allowance and how your dividends combine with any PAYE income to affect your tax band.

How to use this calculator

Enter your PAYE salary.
Enter the dividend amount you plan to take.
See tax owed at each band after the £500 allowance.

PAYE salary

Dividend amount

Dividend tax owed

£0.00

	Amount
Total income (salary + dividends)	–
Dividend allowance used	–
Basic rate (8.75%)	–
Higher rate (33.75%)	–
Additional rate (39.35%)	–
Total dividend tax	–
Net dividends received	–

How Dividend Tax Works in the UK

If you receive dividends from a limited company or investments, they are subject to tax at specific rates. The dividend allowance for 2025/26 is £500 — dividends within this are tax-free regardless of your income level.

Dividend Tax Rates 2025/26

Dividends above the £500 allowance are taxed at: 8.75% (basic rate), 33.75% (higher rate), and 39.35% (additional rate). Your dividend income is added on top of your other income to determine which band it falls into.

Dividends for Company Directors

Many limited company directors pay themselves a small salary (around £12,570) and take the rest as dividends, as dividends are taxed at lower rates than salary and don’t attract National Insurance. This calculator helps you see the tax impact of different dividend amounts alongside your PAYE salary.