This page assumes a salary of £12,570 and shows how dividends flow through UK dividend tax bands for 2025/26 assumptions.
Updated for 2025/26 · Reviewed by James Whitfield · Methodology and assumptions
| Band | Rate | Taxable dividends | Tax |
|---|---|---|---|
| Basic rate dividends | 8.75% | £37,700.00 | £3,298.75 |
| Higher rate dividends | 33.75% | £74,870.00 | £25,268.62 |
| Additional rate dividends | 39.35% | £86,930.00 | £34,206.96 |
This page estimates dividend tax on £200,000 under 2025/26 assumptions and shows the band-by-band split.
Salary uses part of your income tax bands first, which changes how much dividend income falls into basic, higher or additional dividend rates.
Dividend tax is one part of total extraction planning. Use the Ltd vs Sole Trader comparison to see end-to-end take-home outcomes.
Save this salary + dividend scenario as a clean PDF with band-level dividend tax details.
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