NetRate

§ Dividend Tax Calculator · Basic-rate taxpayer

Dividend tax for basic-rate taxpayers.

Limited company directors taking the conventional £12,570 director salary plus dividends pay 10.75% (post-April-2026) on dividend income that falls in the basic rate band — i.e., where total taxable income stays below £50,270.

§ Example — £30,000 dividends · £12,570 other income

On £30,000 dividends (with £12,570 other income), total dividend tax is £3,171 — effective rate 10.57%.

Band breakdown

Dividend allowance (0%)
£0tax

£500 covered

Basic rate (10.75%)
£3,171tax

£29,500 in this band

Total income
£42,570
Dividends
£30,000
Dividend tax
£3,171
Effective rate
10.57%

Calculated at 2026/27 rates. Dividend allowance: £500. Basic rate band ceiling: £37,700. Use the full calculator for your own figures →

§ Other tax bands

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