{"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":"2025-02-11T16:16:09","modified_gmt":"2025-02-11T16:16:09","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

How to calculate tax on dividends<\/h2>\n\n\n\n

There are three steps to calculate the tax you owe on dividends.<\/p>\n\n\n\n

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  1. Add your dividend<\/a> income to all your other income (employment, rental income, etc.)<\/li>\n\n\n\n
  2. Work out your income tax band<\/a><\/li>\n\n\n\n
  3. You’ll pay tax on all your dividends based on your highest tax band<\/li>\n<\/ol>\n\n\n\n

    How to work out your income tax band<\/h2>\n\n\n\n

    Let’s start at the beginning. What is income tax? It’s basically the tax you pay on your wages. The majority of us has to pay it if we earn more than the personal allowance. <\/p>\n\n\n<\/div> \n\n

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    The <\/span>income tax<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
    Income<\/strong><\/td>\nTax rate<\/strong><\/td>\nTax band<\/strong><\/td>\n<\/tr>\n
    Up to \u00a312,570<\/span><\/td>\n0%<\/span><\/td>\nPersonal allowance<\/span><\/td>\n<\/tr>\n
    \u00a312,571 to \u00a350,270<\/span><\/td>\n20%<\/span><\/td>\nBasic rate<\/span><\/td>\n<\/tr>\n
    \u00a350,271 to \u00a3125,140<\/span><\/td>\n40%<\/span><\/td>\nHigher rate<\/span><\/td>\n<\/tr>\n
    over \u00a3125,141<\/span><\/td>\n45%<\/span><\/td>\nAdditional rate<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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    The dividend tax rates <\/h2>\n\n\n\n

    Next, dividends. Use the table below to work out the tax rate you’ll be charged on your dividend income.<\/p>\n\n\n<\/div> \n\n

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    Dividend tax rates <\/b>in the 2025\/26 tax year. The dividend allowance is currently \u00a3500 \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
    Income<\/b><\/td>\nTax band<\/b><\/td>\nTax rate<\/b><\/td>\n<\/tr>\n
    Up to \u00a312,570<\/span><\/td>\nPersonal allowance<\/span><\/td>\n0%<\/span><\/td>\n<\/tr>\n
    \u00a312,571 \u2013 \u00a350,270<\/span><\/td>\nBasic rate<\/span><\/td>\n8.75%<\/span><\/td>\n<\/tr>\n
    \u00a350,271 \u2013 \u00a3125,140<\/span><\/td>\nHigher rate<\/span><\/td>\n33.75%<\/span><\/td>\n<\/tr>\n
    \u00a3125,140+<\/span><\/td>\nAdditional rate<\/span><\/td>\n39.35%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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    Not sure about your dividend situation?<\/h2>\n\n \n \n
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    Not sure whether you need to file a tax return or report your dividend income? No worries! Get a professional, accredited accountant to help guide you in the right direction. Plus, they can help you with your tax efficiency<\/a>. Book your tax advice consultation today for a low, one-off fee.<\/p>\n<\/div>\n <\/div>\n\n \n \n

    \n\n Book now<\/a>\n\n\n <\/div>\n\n \n <\/div>\n<\/div> \n\n
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    How about tax on dividends from investments?<\/h2>\n\n\n\n

    Rules are simple here:<\/p>\n\n\n\n