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Guide

Dividend tax rates 2026/27

For 2026/27 the dividend allowance is £500. Dividends above that are taxed at 10.75%, 35.75% or 39.35%, depending on your other income.

Step by step

  1. 1The first £500 of dividends is covered by the dividend allowance
  2. 2Dividends that fall in the basic rate band are taxed at 10.75%
  3. 3Dividends in the higher rate band are taxed at 35.75%
  4. 4Dividends in the additional rate band are taxed at 39.35%
  5. 5Dividends sit on top of your other income, so salary and profits can push them into a higher band
  6. 6Dividend tax is not the same as Corporation Tax. The company pays Corporation Tax on its profits first

Common questions

What are the dividend tax rates for 2026/27?

After the £500 dividend allowance, dividends are taxed at 10.75%, 35.75% or 39.35%. Which rate applies depends on the other income you have.

Common mistakes

  • Using last year's dividend rates
  • Ignoring your other income when you pick a dividend rate
  • Treating a dividend as a company expense

Related guides

Last checked against GOV.UK: 28 October 2026. Tax year 2026/27.

Not affiliated with HMRC. General information, not professional tax advice. Check GOV.UK or speak to a qualified adviser for your situation.