{"id":182,"date":"2019-05-29T12:57:44","date_gmt":"2019-05-29T11:57:44","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=182"},"modified":"2026-10-29T09:29:15","modified_gmt":"2026-10-29T09:29:15","slug":"dividend-tax-rates","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/investor-capital-gains-tax-returns\/dividend-tax-rates\/","title":{"rendered":"What are the dividend tax rates in the UK?"},"content":{"rendered":"\n<p>Dividend tax rates have been rising and the tax-free allowance has been shrinking. If you earn dividends alongside a salary, here is what you owe for 2025\/26 and how to make sure you are not paying more than you need to.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">Dividend tax rates rose by 2 percentage points in April 2026, and the <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/list-of-tax-free-allowances\/\"><b>tax-free allowance<\/b><\/a><span style=\"font-weight: 400;\"> has fallen <\/span><b>from \u00a32,000 to \u00a3500<\/b><span style=\"font-weight: 400;\"> since 2023\/24. Together, these two changes mean that someone receiving \u00a33,000 in <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/dividends\/\"><span style=\"font-weight: 400;\">dividends<\/span><\/a><span style=\"font-weight: 400;\"> today pays roughly four times more dividend tax than they would have in 2022\/23, even if their income has not changed at all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you have a <\/span><b>salary and dividend income<\/b><span style=\"font-weight: 400;\">, or you pay yourself through your <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/limited-company\/\"><span style=\"font-weight: 400;\">limited company<\/span><\/a><span style=\"font-weight: 400;\">, 2025\/26 is the last year the current rates apply. It is worth knowing exactly where you stand before you file.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Rates and allowances verified for the 2025\/26 tax year. Last updated October 2026.<\/span><\/i><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Tax year<\/b><\/td>\n<td><b>Dividend allowance<\/b><\/td>\n<td><b>Basic rate<\/b><\/td>\n<td><b>Higher rate<\/b><\/td>\n<td><b>Additional rate\u00a0<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2022\/23<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a32,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">33.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">39.35%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2023\/24<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a31,000<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">33.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">39.35%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2024\/25<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3500<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">33.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">39.35%<\/span><\/td>\n<\/tr>\n<tr>\n<td><b>2025\/26<\/b><\/td>\n<td><b>\u00a3500<\/b><\/td>\n<td><b>8.75%<\/b><\/td>\n<td><b>33.75%<\/b><\/td>\n<td><b>39.35%<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">2026\/27<\/span><\/td>\n<td><span style=\"font-weight: 400;\">\u00a3500<\/span><\/td>\n<td><span style=\"font-weight: 400;\">10.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">35.75%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">39.35%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-weight: 400;\">Not sure what you owe on your salary and dividends combined? Our calculator works it out for you in minutes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\ud83d\udc49 <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/dividend-tax\/\"><b>Go to the dividend tax calculator\u00a0<\/b><\/a><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">&nbsp;Do you pay tax on dividends?<\/h2>\n\n\n\n<p>Yes. You pay tax on any <strong>dividend income above \u00a3500<\/strong> at rates of 8.75%, 33.75% or 39.35%, depending on your total income.<\/p>\n\n\n\n<p>You do not pay tax on dividends if:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>they fall within your \u00a3500 <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/dividend-allowance\/\">dividend allowance<\/a><\/li>\n\n\n\n<li>they come from shares held inside a stocks and shares ISA<\/li>\n<\/ul>\n\n\n\n<p>If your dividend income outside an ISA is over \u00a310,000, you need to file a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/self-assessment\/\"><strong>Self Assessment tax return<\/strong><\/a>. Even below that threshold, it can be worth filing voluntarily to claim <a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/pension-tax-relief\/\">pension relief<\/a>, reclaim overpaid tax, or get ahead of a more complex year.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to calculate tax on dividends<\/h2>\n\n\n\n<p>Working out your dividend tax bill comes down to three steps:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Add your <a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/dividend-tax\/\"><strong>dividend income<\/strong><\/a> to all your other income (salary, rental income, <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/savings-interest\/\">savings interest<\/a>, etc.)<\/li>\n\n\n\n<li>Work out your <a href=\"https:\/\/taxfix.com\/en-uk\/the-tax-basics\/income-tax-rates-in-the-uk\/\"><strong>income tax<\/strong><\/a><strong> <\/strong>band based on that total<\/li>\n\n\n\n<li>Apply the dividend tax rate for your band to any dividends above the \u00a3500 allowance<\/li>\n<\/ol>\n\n\n\n<p>Dividends are always taxed last. Your salary and other earnings fill up your <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/personal-allowance\/\">personal allowance<\/a> and rate bands first.<\/p>\n\n\n\n<p><strong>Example: salary and dividends<\/strong><\/p>\n\n\n\n<p>Sarah earns a <strong>\u00a345,000 salary<\/strong> and receives<strong> \u00a38,000 in dividends<\/strong>, giving a total income of \u00a353,000.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>\u00a3500 covered by the dividend allowance: no tax<\/li>\n\n\n\n<li>\u00a35,270 in the basic rate band at 8.75% = \u00a3461<\/li>\n\n\n\n<li>\u00a32,230 in the higher rate band at 33.75% = \u00a3753<\/li>\n\n\n\n<li><strong>Total dividend tax: \u00a31,214<\/strong><\/li>\n<\/ul>\n\n\n\n<p>As Sarah&#8217;s example shows, a salary well below the higher rate threshold can still push dividends into the 33.75% band. If you are a company director paying yourself via salary and dividends, this same calculation applies to you.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What&#8217;s your income tax band?<\/h2>\n\n\n\n<p>Your <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/income-tax\/\">income tax<\/a> band is based on your total income from all sources: salary, dividends, rental income, savings interest and so on. Dividends sit on top of your other income, so they can push you into a higher band than you might expect.&nbsp;<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><span style=\"font-weight: 400;\">The <\/span><b>income tax<\/b><span style=\"font-weight: 400;\"> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Income<\/strong><\/td>\n<td><strong>Tax rate<\/strong><\/td>\n<td><strong>Tax band<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u00a312,570<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Personal allowance<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a312,571 to \u00a350,270<\/span><\/td>\n<td><span style=\"font-weight: 400;\">20%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,271 to \u00a3125,140<\/span><\/td>\n<td><span style=\"font-weight: 400;\">40%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Higher rate<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">over \u00a3125,141<\/span><\/td>\n<td><span style=\"font-weight: 400;\">45%<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Additional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p><em>Scottish taxpayers: different rates apply.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">The dividend tax rates for 2025\/26<\/h2>\n\n\n\n<p>Once you know your income tax band, apply the corresponding dividend tax rate to any dividend income above the \u00a3500 allowance.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-highlight-mini m-neutral m-align-left\">\n    <div class=\"b-block-body\">\n        <p><b>Dividend tax rates <\/b><span style=\"font-weight: 400;\">in the 2025\/26 tax year. The dividend allowance is currently \u00a3500 \ud83d\udc47<\/span><\/p>\n<table>\n<tbody>\n<tr>\n<td><b>Income<\/b><\/td>\n<td><b>Tax band<\/b><\/td>\n<td><b>Tax rate<\/b><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">Up to \u00a312,570<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Personal allowance<\/span><\/td>\n<td><span style=\"font-weight: 400;\">0%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a312,571 \u2013 \u00a350,270<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Basic rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">8.75%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a350,271 \u2013 \u00a3125,140<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Higher rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">33.75%<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\">\u00a3125,140+<\/span><\/td>\n<td><span style=\"font-weight: 400;\">Additional rate<\/span><\/td>\n<td><span style=\"font-weight: 400;\">39.35%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n    <\/div>\n<\/div> <!-- .b-highlight-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n\n<p>Rates increased by 2 percentage points in April 2026. If you are filing for <strong>2025\/26<\/strong>, the rates above apply. From <strong>2026\/27<\/strong>, the basic rate rises to 10.75% and the higher rate to 35.75%.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-cta-mini m-mint m-align-left\">\n    \n    <div class=\"b-cta-mini__content\">\n\n        \n        <h2 class=\"b-cta-mini__title\">Not sure if your dividends are taxed correctly?<\/h2>\n\n        \n        \n        <div class=\"b-cta-mini__body\">\n            <div class=\"b-block-body\"><p><span style=\"font-weight: 400;\">Not sure whether you are paying the right amount on your dividend income, or whether you could be more <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/tax-efficiency\/\"><b>tax-efficient<\/b><\/a><span style=\"font-weight: 400;\">? Get a professional, <\/span><a href=\"https:\/\/taxfix.com\/en-uk\/my-taxscouts-account\/whats-an-accredited-accountant\/\"><span style=\"font-weight: 400;\">accredited accountant<\/span><\/a><span style=\"font-weight: 400;\"> to review your situation and make sure you are not leaving money on the table.<\/span><\/p>\n<\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-cta-mini__action\">\n\n            <a data-js=\"openAuth\" data-location=\"\" data-view=\"signup\" href=\"https:\/\/taxfix.com\/en-uk\/assessment\/signup\" class=\"gtm-get-started-button c-button  m-large\" onClick=\"javascript:setVariant('taxConsultation');\">Book now<\/a>\n\n\n        <\/div>\n\n        \n    <\/div>\n<\/div> <!-- .b-cta-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Mixed income: Salary and dividends<\/h2>\n\n\n\n<p>If you earn a salary and receive dividends, the two interact in a way that is easy to underestimate.<\/p>\n\n\n\n<p>Your salary uses up your personal allowance and basic rate band first. Dividends are taxed on top of that, so even a modest salary can push dividend income into the higher rate band.<\/p>\n\n\n\n<p>This applies to two common situations:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Company directors <\/strong><a href=\"https:\/\/taxfix.com\/en-uk\/limited-companies\/paying-yourself-a-limited-company-director-salary\/\">paying themselves a small salary<\/a> and taking the rest as dividends. This is a tax-efficient approach, but the interaction between salary and dividends means your tax bill can be higher than expected if you do not plan ahead.<\/li>\n\n\n\n<li><strong>Employees with <\/strong><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/shares\/\"><strong>shares<\/strong><\/a>, including RSUs and employee share schemes, who receive dividends on top of their salary. Even a relatively small dividend payment can tip you into a higher band once your salary is factored in.<\/li>\n<\/ul>\n\n\n\n<p>Not sure where your dividends land? <a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/dividend-tax\/\"><strong>Use our dividend tax calculator<\/strong><\/a><strong> <\/strong>to see your exact position based on your salary and dividend income combined. If you receive dividends through an employee share scheme, a Taxfix accountant can help you work out exactly what you owe.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How about tax on dividends from investments?<\/h2>\n\n\n\n<p>It depends on where you hold your shares:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/isa\/\"><strong>Stocks and shares ISA<\/strong><\/a><strong>:<\/strong> no tax on dividends, ever.<\/li>\n\n\n\n<li><strong>Any other account (GIA, trading account, etc.):<\/strong> dividends are taxable above the \u00a3500 allowance, even if you automatically reinvest them into new shares.<\/li>\n<\/ul>\n\n\n\n<p>HMRC treats dividends as income in the year you receive them, not the year you reinvest them. Your broker or platform should provide a dividend statement showing your total for the tax year.<\/p>\n\n\n\n<p>If you have dividend income from multiple sources, such as employee share schemes and personal investments, you must add them all together when calculating your tax.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"embed-container\"><iframe loading=\"lazy\" title=\"Tax in 10(ish) seconds - What are dividends?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/rmSTq5Lophw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p>To figure out exactly how much tax you\u2019ll pay, you can use our <a href=\"https:\/\/taxfix.com\/en-uk\/calculator\/dividend-tax\/\">dividend tax calculator<\/a>.\u00a0<\/p>\n\n\n<div data-react=\"tooltip-provider\"><\/div>\n\n    <div class=\"c-block-calculator\">\n\n    <div class=\"c-block-calculator__container\">\n\n\n    <div data-react=\"dividend-calculator\" data-options='{\n        \"title\": \"Dividend tax calculator 2025\/26\",\n        \"lead\": \"\"\n    }'>\n        <!-- Default calc code -->\n\n        <div class=\"sc-giYgFv fzUHXQ\"><div class=\"sc-ezbkgU bcxCiI\"><div class=\"sc-bYoCmx RakSM\"><div width=\"100%\" aria-expanded=\"false\" class=\"DropdownSelect__Container-sc-1iiysit-0 evEFoA\"><button width=\"100%\" class=\"DropdownSelect__LabelContainer-sc-1iiysit-1 egNJwI\"><span class=\"DropdownSelect__Label-sc-1iiysit-2 loOBxi\">Tax year 2024\/25<\/span> <span class=\"DropdownSelect__Arrow-sc-1iiysit-3 hcHQYJ\">\u25bc<\/span><\/button><\/div><\/div><\/div><div class=\"sc-dPiKHq jvrqXK\"><div class=\"sc-bBHHQT eyRCSV\"><h3 class=\"sc-khQdMy idLFkV\">Your situation<\/h3><img decoding=\"async\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMzQiIGhlaWdodD0iNzYiIHZpZXdCb3g9IjAgMCAzNCA3NiIgZmlsbD0ibm9uZSIgeG1sbnM9Imh0dHA6Ly93d3cudzMub3JnLzIwMDAvc3ZnIj48cGF0aCBkPSJNMzIuMjUgMzQuOTMzNVYxLjg0OTYxSDIwLjE0OTlDMTcuNzQ5OSA5LjA0OTYxIDExLjA1IDEzLjY0OTYgMS43NSAxNC4xNDk2VjI2Ljk0OTZDNy45NSAyNi45NDk2IDEzLjg0OTkgMjUuMDQ5NiAxNy44NDk5IDIxLjg0OTZWMzQuOTMzNU0xNy44NDk5IDU1LjUxODhWNzQuMDQ5NkgzMi4yNVY1OS40OTQ1VjU1LjUxODgiIHN0cm9rZT0iYmxhY2siIHN0cm9rZS13aWR0aD0iMiIgc3Ryb2tlLWxpbmVjYXA9InJvdW5kIiBzdHJva2UtbGluZWpvaW49InJvdW5kIi8+PC9zdmc+\" alt=\"Outlined number one\" class=\"sc-cNKpQo gvneOt\"><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Image of an arrow\" class=\"sc-AjmZR ctylzc\"><\/div><div class=\"sc-hUpaWb\"><form><div class=\"Form__FormRow-sc-32vt5e-0 ddlwSx\"><div class=\"Form__FormRowTitle-sc-32vt5e-2 coHrqe\">How did you earn dividends?<\/div><div class=\"Form__FormRowItem-sc-32vt5e-3\"><div class=\"Form__FormControlContainer-sc-32vt5e-9 bSbmCJ\"><div class=\"Radio__Container-sc-1d2f0wy-0 iLSPPf\"><input type=\"radio\" id=\"typelimited\" name=\"type\" class=\"Radio__Input-sc-1d2f0wy-1 brdvpz\" value=\"limited\"><label for=\"typelimited\" class=\"Radio__Label-sc-1d2f0wy-2 fpqjiq\">My limited company<\/label><\/div><\/div><div class=\"Form__FormControlContainer-sc-32vt5e-9 bSbmCJ\"><div class=\"Radio__Container-sc-1d2f0wy-0 iLSPPf\"><input type=\"radio\" id=\"typeother\" name=\"type\" class=\"Radio__Input-sc-1d2f0wy-1 brdvpz\" value=\"other\"><label for=\"typeother\" class=\"Radio__Label-sc-1d2f0wy-2 fpqjiq\">A general investment account<\/label><\/div><\/div><div class=\"Form__FormControlContainer-sc-32vt5e-9 bSbmCJ\"><div class=\"Radio__Container-sc-1d2f0wy-0 iLSPPf\"><input type=\"radio\" id=\"typeisa\" name=\"type\" class=\"Radio__Input-sc-1d2f0wy-1 brdvpz\" value=\"isa\"><label for=\"typeisa\" class=\"Radio__Label-sc-1d2f0wy-2 fpqjiq\">An ISA<\/label><\/div><\/div><\/div><\/div><div class=\"sc-kLwgWK gVgARU\"><div class=\"Form__FormRowTitle-sc-32vt5e-2 coHrqe\">Dividend income<\/div><div class=\"Form__FormRowItem-sc-32vt5e-3\"><div class=\"Input__Container-sc-11yg3hb-0 jiJACg\"><input type=\"number\" min=\"0\" pattern=\"[0-9]*\" name=\"dividends\" class=\"Input__InputElement-sc-11yg3hb-1 gvuJbz\"><div class=\"Input__Suffix-sc-11yg3hb-4 eEnjn\">\u00a3<\/div><\/div><\/div><\/div><div class=\"sc-kLwgWK gVgARU\"><div class=\"Form__FormRowTitle-sc-32vt5e-2 coHrqe\">Other income <div class=\"sc-eJwXpk byFCvI\"><span data-hint-default=\"Any additional income affects the tax you pay on dividends (e.g. your salary, rental income, etc.)\"><div class=\"sc-nVjpj eKPbQR\">?<\/div><\/span><\/div><\/div><div class=\"Form__FormRowItem-sc-32vt5e-3\"><div class=\"Input__Container-sc-11yg3hb-0 jiJACg\"><input type=\"number\" min=\"0\" pattern=\"[0-9]*\" name=\"income\" class=\"Input__InputElement-sc-11yg3hb-1 gvuJbz\"><div class=\"Input__Suffix-sc-11yg3hb-4 eEnjn\">\u00a3<\/div><\/div><\/div><\/div><\/form><\/div><\/div><div opacity=\"1\" class=\"sc-jgrIVw gcVyeu\"><div class=\"sc-gSQGeZ mqvVl\"><h3 class=\"sc-iNGGwv dFrXnM\">Tax and profit<\/h3><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Outlined number two\" class=\"sc-lbhJmS hQoEOj\"><\/div><div class=\"sc-jeqYYF fOQSYu\"><li class=\"sc-cCcYRi TgcgA\"><div class=\"sc-iUKrWq jFZeFw\">Your dividend profits<\/div><div class=\"sc-efQUeY cGxXVa\">\u00a33,000<\/div><\/li><li class=\"sc-cCcYRi hPEaJy\"><div class=\"sc-iUKrWq jFZeFw\">Dividend tax to pay<\/div><div class=\"sc-efQUeY cGxXVa\">\u00a3219<\/div><div class=\"sc-jcFkyM jRsQZY\"><div class=\"sc-caiKgP bVZKxP\">\u00a3500 tax-free dividend allowance <div class=\"sc-eJwXpk byFCvI\"><span data-hint-default=\"In this tax year, you can make up to \u00a3500 profit tax-free\"><div class=\"sc-nVjpj eKPbQR\">?<\/div><\/span><\/div><\/div><\/div><\/li><li class=\"sc-cCcYRi hBbrsS\"><div class=\"sc-iUKrWq deKGkd\">Profit after tax<\/div><div class=\"sc-efQUeY jpRyzu\"><div class=\"sc-hiwReK ePeGmo\">\u00a32,781<svg width=\"90\" height=\"9\" viewBox=\"0 0 90 9\" fill=\"none\"><path d=\"M88.7252 3.17505C88.7252 3.17505 57.0997 -2.90497 1.32031 7.71404\" stroke=\"black\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"><\/path><\/svg><\/div><\/div><\/li><div class=\"sc-cidCJl cKZmtn\"><p>You can either call HMRC on 0300 200 3300 to take this tax from your salary or pension, or include it on your Self Assessment tax return.<\/p><\/div><\/div><\/div><div class=\"sc-dJjZJu isonvD\"><button class=\"sc-hGPAah fmpGnU\"><img decoding=\"async\" src=\"data:image\/svg+xml;base64,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\" alt=\"Illustration\" class=\"sc-dlVyqM lhOciq\"><div class=\"sc-kfPtPH\"><div class=\"sc-fKVsgm kAXsua\">Calculation details<\/div><div class=\"sc-bBHwJV jdTgMA\"><span>Click here<\/span> to show how we&#8217;ve calculated your taxes<\/div><\/div><\/button><div class=\"sc-iwjezw jVHDsA\"><div class=\"sc-cTApHj\"><div class=\"c-body m-smaller\"><h2>How your dividend tax is calculated<\/h2><p>Tax on dividends is calculated pretty much the same way as tax on any other income.<\/p><p>The biggest difference is the tax rates &#8211; instead of the usual 20%, 40%, 45% (depending on your tax band), you&#8217;ll be taxed at 8.75%, 33.75%, and 39.35%.<\/p><p>The numbers look strange but the reason is simple: the company paying you those dividends already paid corporate tax, so you&#8217;re paying the difference.<\/p><p>This is mostly relevant if you own your company and you&#8217;re trying to decide the best way to pay yourself: dividends or salary. Keep in mind that if you pay from your salary, you also need to pay National Insurance.<\/p><p>In your case you earned <strong class=\"sc-jObXwK hgXXrT\">\u00a33,000<\/strong> in dividends and <strong class=\"sc-jObXwK hgXXrT\">\u00a329,000<\/strong> in other income (this can be salary, rent, etc.).<\/p><h3>Dividend Tax<\/h3><p>You don&#8217;t pay any dividend tax on the first <strong class=\"sc-jObXwK hgXXrT\">\u00a3500<\/strong> you make in dividends.<\/p><p>You pay 8.75% on the next <strong class=\"sc-jObXwK hgXXrT\">\u00a32,500<\/strong><\/p><p>Call HMRC on 0300 200 3300 so they can change your tax code &#8211; you&#8217;ll pay the dividend tax through your salary or pension.<\/p><p>If you normally file a tax return, you can also pay dividend tax through it.<\/p><\/div><\/div><\/div><\/div><\/div>\n\n        <!-- END Default calc code -->\n    <\/div>\n\n\n    <\/div> <!-- .c-container -->\n<\/div> <!-- .c-block-calculator -->\n\n\n\n\n\n<h2 class=\"wp-block-heading\">When do you need to report dividend income?<\/h2>\n\n\n\n<p>You must report dividend income to HMRC if it exceeds your \u00a3500 allowance. How you do that depends on how much you receive:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>\u00a3500 or less: <\/strong>no action needed. You are within the dividend allowance.<\/li>\n\n\n\n<li><strong>\u00a3501 to \u00a310,000:<\/strong> you do not need to file a Self Assessment tax return. Contact HMRC after the end of the tax year and they will collect the tax through your <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/paye\/\">PAYE<\/a> code.<\/li>\n\n\n\n<li><strong>Over \u00a310,000: <\/strong>you must file a Self Assessment tax return. Register with HMRC after the end of the tax year.<\/li>\n<\/ul>\n\n\n\n<p>You may also need to file if you have other untaxed income, such as capital gains, <a href=\"https:\/\/taxfix.com\/en-uk\/landlord-tax-returns\/tax-on-rental-income\/\">rental income<\/a>, or <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/savings-interest\/\">savings interest<\/a> above the allowances. Most people in this situation are already filing Self Assessment for another reason, so dividends are simply added to the return.<\/p>\n\n\n\n<p>Not sure whether you need to file? <a href=\"https:\/\/taxfix.com\/en-uk\/limited-companies\/filing-a-director-self-assessment-tax-return\/\"><strong>Find out if Self Assessment applies to you<\/strong><\/a>.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">How to pay tax on dividends<\/h2>\n\n\n\n<p>There are two ways to pay:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Self Assessment:<\/strong> include your dividend income on your tax return. This is the most common route if you have multiple income sources. Dividend tax is due by 31 January following the end of the tax year.<\/li>\n\n\n\n<li><strong>PAYE adjustment: <\/strong>if you are employed and your dividend tax bill is under \u00a33,000, HMRC can collect it through your tax code, spread across your monthly pay. Contact HMRC after the end of the tax year to arrange this.<\/li>\n<\/ul>\n\n\n\n<p><strong>One important point: <\/strong>your broker or platform does not deduct dividend tax automatically. It is your responsibility to report it and pay it.<\/p>\n\n\n<\/div> <!-- .c-body -->\n\n<div class=\"b-cta-mini m-mint m-align-left\">\n    \n    <div class=\"b-cta-mini__content\">\n\n        \n        <h2 class=\"b-cta-mini__title\">Need to declare your dividend profits or losses?<\/h2>\n\n        \n        \n        <div class=\"b-cta-mini__body\">\n            <div class=\"b-block-body\"><p>Get an accredited accountant to sort and file your Self Assessment tax return to declare your dividend tax liabilities to HMRC. Use Taxfix for a stress-free process and a low, one-off price.<\/p>\n<\/div>\n        <\/div>\n\n        \n        \n        <div class=\"b-cta-mini__action\">\n\n            <a data-js=\"openAuth\" data-location=\"\" data-view=\"signup\" href=\"https:\/\/taxfix.com\/en-uk\/assessment\/signup\" class=\"gtm-get-started-button c-button  m-large\" onClick=\"javascript:setVariant('taxReturn');\">Get Started<\/a>\n\n\n        <\/div>\n\n        \n    <\/div>\n<\/div> <!-- .b-cta-mini -->\n\n<div class=\"c-body\">\n\n\n\n\n<h2 class=\"wp-block-heading\">Dividend tax and company directors<\/h2>\n\n\n\n<p>If you are a <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/company-director\/\"><strong>director of your own limited company<\/strong><\/a>, you likely pay yourself a small salary and take the rest as dividends. This is a popular approach because dividends are not subject to <a href=\"https:\/\/taxfix.com\/en-uk\/glossary\/national-insurance\/\">National Insurance<\/a> contributions, unlike salary, making it a more tax-efficient way to extract profit from your company.<\/p>\n\n\n\n<p>However, you must report and pay dividend tax on any dividends above the \u00a3500 allowance. And with the allowance having fallen from \u00a35,000 in 2016 to just \u00a3500 today, more directors are paying more <strong>dividend tax <\/strong>than they might expect.<\/p>\n\n\n\n<p>A Taxfix accountant can help you work out the most tax-efficient salary and dividend split for your situation. <a href=\"https:\/\/taxfix.com\/en-uk\/limited-companies\/paying-yourself-a-limited-company-director-salary\/\"><strong>Read our guide on paying yourself a limited company director salary.<\/strong><\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">FAQ: Dividend tax rates in the UK<\/h2>\n\n\n\n<h3 class=\"wp-block-heading\">Do you pay tax on dividends?<\/h3>\n\n\n\n<p>Yes. You pay tax on dividends in the UK above <strong>\u00a3500<\/strong> at rates of 8.75%, 33.75% or 39.35%, depending on your total income. Dividends inside a stocks and shares ISA are always tax-free.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How much tax do you pay on dividends?<\/h3>\n\n\n\n<p>It depends on your income tax band. Basic rate taxpayers pay <strong>8.75%<\/strong>, higher rate taxpayers pay <strong>33.75%<\/strong>, and additional rate taxpayers pay <strong>39.35%<\/strong> on dividends above the \u00a3500 allowance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What is the dividend allowance for 2025\/26?<\/h3>\n\n\n\n<p>The dividend allowance is <strong>\u00a3500<\/strong> for the 2025\/26 tax year. The first \u00a3500 is tax-free, regardless of your income tax band.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do I pay tax on dividends if I reinvest them?<\/h3>\n\n\n\n<p>Yes. HMRC treats tax on dividend income as arising <strong>in the year you receive it<\/strong>, not the year you reinvest it. Your broker or platform should provide a statement showing your total for the tax year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Are dividends from ISAs taxable?<\/h3>\n\n\n\n<p>No. There is no tax on dividends received from shares held inside a stocks and shares ISA. They are completely <strong>tax-free<\/strong> and do not need to be reported to HMRC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">How do I report dividend income to HMRC?<\/h3>\n\n\n\n<p>If your dividends are between<strong> \u00a3501<\/strong> and <strong>\u00a310,000<\/strong>, contact HMRC after the end of the tax year to have the tax on dividend income collected through your PAYE code. If it is over \u00a310,000, you must register for Self Assessment and file a tax return.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Do company directors pay tax on dividends?<\/h3>\n\n\n\n<p>Yes. Company directors pay tax on dividend income above the <strong>\u00a3500 <\/strong>allowance, at the rate that corresponds to their total income. Dividends do not attract National Insurance, which is why the salary-plus-dividends approach is popular, but the tax still applies.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What happens if I don&#8217;t report dividend income?<\/h3>\n\n\n\n<p>HMRC can charge <strong>interest <\/strong>and issue<strong> <\/strong><a href=\"https:\/\/taxfix.com\/en-uk\/self-assessment-basics\/late-tax-return-penalties\/\"><strong>penalties<\/strong><\/a><strong> <\/strong>for late or missing returns. If you are unsure whether you need to report, a <a href=\"https:\/\/taxfix.com\/en-uk\/tax-advice\/\"><strong>Taxfix accountant<\/strong><\/a><strong> <\/strong>can help you work out your position quickly.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><em>This article provides general information only and is not personalised tax advice.<\/em><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Dividend tax rates have been rising and the tax-free allowance has been shrinking. If you earn dividends alongside a salary, here is what you owe for 2025\/26 and how to make sure you are not paying more than you need to. &nbsp;Do you pay tax on dividends? Yes. You pay tax on any dividend income [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[459,458],"tags":[416,348,418],"class_list":["post-182","post","type-post","status-publish","format-standard","hentry","category-dividends","category-investor-capital-gains-tax-returns","tag-benefits-reliefs-grants","tag-income-tax","tag-invest"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What are the dividend tax rates in the UK? &#8211; Taxfix<\/title>\n<meta name=\"description\" content=\"If you receive dividends from an investment or you&#039;re a company director and you pay them to yourself, you pay tax separately on this income.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/taxfix.com\/en-uk\/investor-capital-gains-tax-returns\/dividend-tax-rates\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What are the dividend tax rates in the UK? 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