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Estimate tax on dividend income in United Kingdom for 2026. Source: GOV.UK Income Tax: changes to dividend rates (from 6 April 2026).
Net Dividend
£8,978.75
Effective Tax Rate
10.21%
Tax Amount
£1,021.25
Gross Dividend
£10,000
| Component | Rate | Amount |
|---|---|---|
| Tax-free allowance | — | -£500 |
| Dividend tax | 10.75% | £1,021.25 |
In the United Kingdom, dividend income above the dividend allowance (£500 in 2026) is taxed at three rates depending on your income band: ordinary rate 10.75%, upper rate 35.75%, and additional rate 39.35% (from 6 April 2026). This calculator uses the ordinary rate as a default; your actual rate depends on your total income (salary plus dividends).
The allowance is per person and is separate from the personal allowance for employment income. Dividends are taxed as the top slice of income, so the rate that applies depends on which band your total income falls into.
The UK taxes dividends in bands (ordinary, upper, additional) that depend on total income, with a small flat allowance—unlike flat-rate systems in Germany or France.
On £5,000 gross dividends (single filer, 2026), tax in United Kingdom is about £483.75, leaving approximately £4,516.25 after tax (effective rate 9.68%). Use the calculator above for your own amount and filing status.
Rates and allowances are from GOV.UK Income Tax: changes to dividend rates (from 6 April 2026) for 2026. This calculator is for estimation only and does not constitute tax or investment advice; withholding and final tax can differ. Consult a qualified advisor or https://www.gov.uk/government/publications/income-tax-changes-to-tax-rates-for-property-savings-and-dividend-income for your situation.
In United Kingdom, the dividend tax rate is 10.75%. The first £500 (single) or £500 (married) of dividend income may be tax-free, depending on local rules. Data is for 2026.
For example, on £5,000 gross dividends (single filer), tax in United Kingdom is about £483.75, so you keep approximately £4,516.25 after tax (effective rate 9.68%). Figures are estimates for 2026.
In United Kingdom, the tax-free allowance for dividend and capital gains income in 2026 is £500 for single filers and £500 for married couples (e.g. Sparer-Pauschbetrag in Germany, dividend allowance in the UK). Amounts above this are taxed at the dividend rate.
Gross dividend income is reduced by the tax-free allowance (£500 single / £500 married).
Yes. In United Kingdom, dividend income is taxed separately from salary: dividends typically use a flat or preferential rate (e.g. 10.75%) rather than the full progressive income tax bands applied to wages. This calculator uses the dividend rates for 2026.
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