Dividend Tax Calculator 2025/26
Calculate your dividend tax for the 2025/26 tax year. Ideal for limited company directors, self-employed individuals, and investors. Includes the £500 dividend allowance, income tax on salary, and National Insurance contributions.
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Scottish taxpayers have different income tax bands but dividend tax rates are the same UK-wide.
Your tax summary
Net income£48,539
Total income£52,570
Income tax on salary£0
Dividend tax£4,031
National Insurance£0
Effective overall rate7.7%
Effective dividend rate10.1%
Total tax£4,031
Income breakdown
Take-home pay£48,539
Income Tax£0
Dividend Tax£4,031
Full breakdown
| Item | Annual | Monthly |
|---|---|---|
| Salary / other income | £12,570.00 | £1,047.50 |
| Dividends | £40,000.00 | £3,333.33 |
| Personal Allowance | £12,570.00 | £1,047.50 |
| Income Tax (on salary) | -£0.00 | -£0.00 |
| Dividend Allowance | £500.00 | £41.67 |
| Dividend Tax | -£4,031.25 | -£335.94 |
| National Insurance | -£0.00 | -£0.00 |
| Total deductions | -£4,031.25 | -£335.94 |
| Net income | £48,538.75 | £4,044.90 |
Dividend tax by band
| Band | Rate | Dividends in band | Tax |
|---|---|---|---|
| Dividend allowance | 0.00% | £500.00 | £0.00 |
| Basic rate | 8.75% | £37,200.00 | £3,255.00 |
| Higher rate | 33.75% | £2,300.00 | £776.25 |
| Total dividend tax | £40,000.00 | £4,031.25 |
On a salary of £12,570 plus £40,000 in dividends (England, Wales & Northern Ireland), your total income is £52,570. After £0 income tax on salary, £4,031 dividend tax, and £0 National Insurance, you would take home £48,539 per year (£4,045 per month). Your effective overall tax rate is 7.7% and your effective dividend tax rate is 10.1%. The first £500 of your dividends is covered by the dividend allowance and taxed at 0%.