This page assumes a salary of £12,570 and shows how dividends flow through UK dividend tax bands for 2026/27 assumptions.
Updated for 2026/27 · Reviewed by James Whitfield · Methodology and assumptions
Not on PAYE? Browse all 7 packs in the Tax Pack Library · £9.99
| Band | Rate | Taxable dividends | Tax |
|---|---|---|---|
| Basic rate dividends | 10.75% | £24,500.00 | £2,633.75 |
| Higher rate dividends | 35.75% | £0.00 | £0.00 |
| Additional rate dividends | 39.35% | £0.00 | £0.00 |
This page estimates dividend tax on £25,000 under 2026/27 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.