What Is the Dividend Tax Rate for 2026/27?

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Last updated 23 October 2026. Written by the Limited Company Accountant UK team, part of Accotax. Figures are for the 2026/27 tax year; always check GOV.UK for the latest rates.

Short answer: For 2026/27 dividend tax is 10.75% for basic rate, 35.75% for higher rate and 39.35% for additional rate taxpayers, after a £500 dividend allowance.

At a glance

Allowance £500
Basic 10.75%
Higher 35.75%
Additional 39.35%

How it is calculated

Dividends sit on top of your other income and use up any spare personal allowance first.

Calculate yours

Use our dividend tax calculator.

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The bottom line

For 2026/27 dividend tax is 10.75% for basic rate, 35.75% for higher rate and 39.35% for additional rate taxpayers, after a £500 dividend allowance. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.

Frequently asked questions

When do I pay dividend tax?

A

Through Self Assessment, normally by 31 January.

Is there NI on dividends?

A

No.

Ready for a fixed monthly price?

Our packages start at £45.83 + VAT and cover accounts, tax and deadlines. Get a free quote or call 0203 4411 258.

JW
About the authorJames Whitfield, Senior Accountant

James Whitfield is a senior accountant at Limited Company Accountant UK, part of the Accotax group. He works with company directors on year-end accounts, Corporation Tax, VAT and director pay, and reviews every guide on this site against GOV.UK guidance.

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