Tax on your dividends (2026/27)
£0
Advertisement
How much tax will I pay on dividends in 2026/27? The first £500 of dividends is tax-free. Above that, dividends are taxed at 10.75% within the basic-rate band, 35.75% in the higher-rate band and 39.35% above £125,140 — after your salary and Personal Allowance are taken into account. These rates rose by 2 percentage points from April 2026.
Dividend FAQs
Does this include Corporation Tax?
No — this is the personal tax you pay on dividends you receive. Your company also pays Corporation Tax (19–25%) on its profits before dividends are paid out.
Are dividend rates different in Scotland?
No. Dividend tax is set UK-wide, so Scottish taxpayers pay the same dividend rates. Only the tax on your salary differs in Scotland.