Dividend tax bands 2026/27
rates verified 24 Jul 2026 · next refresh after Autumn Statement
Direct answer
The two lower dividend rates rose by 2 percentage points on 6 April 2026. For 2026/27, the rates are 10.75% (basic), 35.75% (higher) and 39.35% (additional, unchanged). The dividend allowance is £500630.
2026/27 vs 2025/26
Band2025/262026/27ChangeFrom
Basic-rate dividends8.75%10.75%+2.00pp6 Apr 2026
Higher-rate dividends33.75%35.75%+2.00pp6 Apr 2026
Additional-rate dividends39.35%39.35%No change6 Apr 2026
Dividend allowance£500£500No change6 Apr 2026
How dividend income stacks
Dividend income is taxed after non-savings and savings income. It uses up basic-rate band first, then higher-rate, then additional. The £500 allowance reduces tax but still uses band space.
Director split
For a director paying themselves £12,570 salary plus dividends, the 2pp uplift adds £200 of tax for every £10,000 of dividends taken inside the basic-rate band, and £200 per £10,000 above. See the salary vs dividend calculator and the 2026/27 compare page.