Dividend tax calculator
See how salary and dividends are taxed together. With a £12,570 salary, adding £40,000 of dividends adds £4,821.25 of income tax in 2026/27. Enter your own figures below.
£3,979 a month in your pocket
£47,749 a year. You keep 91% of £52,570, dividends included.
Of £52,570 a year
The full breakdown
| Year | Month | Week | |
|---|---|---|---|
| Pay | £12,570.00 | £1,047.50 | £241.73 |
| Dividends | £40,000.00 | £3,333.33 | £769.23 |
| Income tax | -£0.00 | -£0.00 | -£0.00 |
| Tax the dividends add | -£4,821.25 | -£401.77 | -£92.72 |
| National Insurance | -£0.00 | -£0.00 | -£0.00 |
| In your pocket | £47,748.75 | £3,979.06 | £918.25 |
- Payroll deduction rate
- 0.0%
- Personal allowance, with dividends
- £12,570.00
- Employer National Insurance
- £1,135.50
- Cost to your employer
- £13,705.50
| Band | Amount | Rate | Tax |
|---|---|---|---|
| Your Personal Allowance across pay and dividends | |||
| Personal allowance against pay | £12,570.00 | ||
| Income tax on your pay before dividends | |||
| basic rate | £0.00 | 20% | £0.00 |
| Tax added by £40,000 of annual dividends, 2026/27 | |||
| Dividend allowance | £500.00 | 0% | £0.00 |
| Dividends at the ordinary rate | £37,200.00 | 10.75% | £3,999.00 |
| Dividends at the upper rate | £2,300.00 | 35.75% | £822.25 |
| Totals | £52,570.00 | 9.17% | £4,821.25 |
The total rate is income tax divided by gross annual income. It excludes National Insurance and pension deductions.
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