UK Dividend Tax 2025-26

Dividend tax rates and take-home calculations for company directors, investors, and limited company owners. £500 dividend allowance for 2025-26.

2025-26 dividend tax rates

Dividend allowance

£500 (tax-free)

Basic rate band

8.75%

Higher rate band

33.75%

Additional rate band

39.35%

No salary (dividends only) + dividends

£750 dividends £728 net £1,500 dividends £1,412 net £2,500 dividends £2,325 net £4,000 dividends £3,694 net £5,000 dividends £4,606 net £6,000 dividends £5,519 net £8,000 dividends £7,344 net £10,000 dividends £9,169 net £15,000 dividends £13,731 net £20,000 dividends £18,294 net £30,000 dividends £27,419 net £40,000 dividends £36,094 net £50,000 dividends £42,719 net

£12,570 salary + dividends

£750 dividends £13,298 net £1,500 dividends £13,982 net £2,500 dividends £14,895 net £4,000 dividends £16,264 net £5,000 dividends £17,176 net £6,000 dividends £18,089 net £8,000 dividends £19,914 net £10,000 dividends £21,739 net £15,000 dividends £26,301 net £20,000 dividends £30,864 net £30,000 dividends £39,989 net £40,000 dividends £48,664 net £50,000 dividends £55,289 net

£18,000 salary + dividends

£750 dividends £17,642 net £1,500 dividends £18,326 net £2,500 dividends £19,239 net £4,000 dividends £20,608 net £5,000 dividends £21,520 net £6,000 dividends £22,433 net £8,000 dividends £24,258 net £10,000 dividends £26,083 net £15,000 dividends £30,645 net £20,000 dividends £35,208 net £30,000 dividends £44,333 net £40,000 dividends £51,650 net £50,000 dividends £58,275 net

£20,000 salary + dividends

£750 dividends £19,242 net £1,500 dividends £19,926 net £2,500 dividends £20,839 net £4,000 dividends £22,208 net £5,000 dividends £23,120 net £6,000 dividends £24,033 net £8,000 dividends £25,858 net £10,000 dividends £27,683 net £15,000 dividends £32,245 net £20,000 dividends £36,808 net £30,000 dividends £45,933 net £40,000 dividends £52,750 net £50,000 dividends £59,375 net

£22,000 salary + dividends

£750 dividends £20,842 net £1,500 dividends £21,526 net £2,500 dividends £22,439 net £4,000 dividends £23,808 net £5,000 dividends £24,720 net £6,000 dividends £25,633 net £8,000 dividends £27,458 net £10,000 dividends £29,283 net £15,000 dividends £33,845 net £20,000 dividends £38,408 net £30,000 dividends £47,225 net £40,000 dividends £53,850 net £50,000 dividends £60,475 net

£24,000 salary + dividends

£750 dividends £22,442 net £1,500 dividends £23,126 net £2,500 dividends £24,039 net £4,000 dividends £25,408 net £5,000 dividends £26,320 net £6,000 dividends £27,233 net £8,000 dividends £29,058 net £10,000 dividends £30,883 net £15,000 dividends £35,445 net £20,000 dividends £40,008 net £30,000 dividends £48,325 net £40,000 dividends £54,950 net £50,000 dividends £61,575 net

£26,000 salary + dividends

£750 dividends £24,042 net £1,500 dividends £24,726 net £2,500 dividends £25,639 net £4,000 dividends £27,008 net £5,000 dividends £27,920 net £6,000 dividends £28,833 net £8,000 dividends £30,658 net £10,000 dividends £32,483 net £15,000 dividends £37,045 net £20,000 dividends £41,608 net £30,000 dividends £49,425 net £40,000 dividends £56,050 net £50,000 dividends £62,675 net

£28,000 salary + dividends

£750 dividends £25,642 net £1,500 dividends £26,326 net £2,500 dividends £27,239 net £4,000 dividends £28,608 net £5,000 dividends £29,520 net £6,000 dividends £30,433 net £8,000 dividends £32,258 net £10,000 dividends £34,083 net £15,000 dividends £38,645 net £20,000 dividends £43,208 net £30,000 dividends £50,525 net £40,000 dividends £57,150 net £50,000 dividends £63,775 net

£30,000 salary + dividends

£750 dividends £27,242 net £1,500 dividends £27,926 net £2,500 dividends £28,839 net £4,000 dividends £30,208 net £5,000 dividends £31,120 net £6,000 dividends £32,033 net £8,000 dividends £33,858 net £10,000 dividends £35,683 net £15,000 dividends £40,245 net £20,000 dividends £44,808 net £30,000 dividends £51,625 net £40,000 dividends £58,250 net £50,000 dividends £64,875 net

£33,000 salary + dividends

£750 dividends £29,642 net £1,500 dividends £30,326 net £2,500 dividends £31,239 net £4,000 dividends £32,608 net £5,000 dividends £33,520 net £6,000 dividends £34,433 net £8,000 dividends £36,258 net £10,000 dividends £38,083 net £15,000 dividends £42,645 net £20,000 dividends £46,650 net £30,000 dividends £53,275 net £40,000 dividends £59,900 net £50,000 dividends £66,525 net

£36,000 salary + dividends

£750 dividends £32,042 net £1,500 dividends £32,726 net £2,500 dividends £33,639 net £4,000 dividends £35,008 net £5,000 dividends £35,920 net £6,000 dividends £36,833 net £8,000 dividends £38,658 net £10,000 dividends £40,483 net £15,000 dividends £44,988 net £20,000 dividends £48,300 net £30,000 dividends £54,925 net £40,000 dividends £61,550 net £50,000 dividends £68,175 net

£40,000 salary + dividends

£750 dividends £35,242 net £1,500 dividends £35,926 net £2,500 dividends £36,839 net £4,000 dividends £38,208 net £5,000 dividends £39,120 net £6,000 dividends £40,033 net £8,000 dividends £41,858 net £10,000 dividends £43,683 net £15,000 dividends £47,188 net £20,000 dividends £50,500 net £30,000 dividends £57,125 net £40,000 dividends £63,750 net £50,000 dividends £70,375 net

£43,000 salary + dividends

£750 dividends £37,642 net £1,500 dividends £38,326 net £2,500 dividends £39,239 net £4,000 dividends £40,608 net £5,000 dividends £41,520 net £6,000 dividends £42,433 net £8,000 dividends £44,200 net £10,000 dividends £45,525 net £15,000 dividends £48,838 net £20,000 dividends £52,150 net £30,000 dividends £58,775 net £40,000 dividends £65,400 net £50,000 dividends £72,025 net

£46,000 salary + dividends

£750 dividends £40,042 net £1,500 dividends £40,726 net £2,500 dividends £41,639 net £4,000 dividends £43,008 net £5,000 dividends £43,863 net £6,000 dividends £44,525 net £8,000 dividends £45,850 net £10,000 dividends £47,175 net £15,000 dividends £50,488 net £20,000 dividends £53,800 net £30,000 dividends £60,425 net £40,000 dividends £67,050 net £50,000 dividends £73,675 net

£50,270 salary + dividends

£750 dividends £43,396 net £1,500 dividends £43,892 net £2,500 dividends £44,555 net £4,000 dividends £45,549 net £5,000 dividends £46,211 net £6,000 dividends £46,874 net £8,000 dividends £48,199 net £10,000 dividends £49,524 net £15,000 dividends £52,836 net £20,000 dividends £56,149 net £30,000 dividends £62,774 net £40,000 dividends £69,399 net £50,000 dividends £76,024 net

£55,000 salary + dividends

£750 dividends £46,234 net £1,500 dividends £46,730 net £2,500 dividends £47,393 net £4,000 dividends £48,387 net £5,000 dividends £49,049 net £6,000 dividends £49,712 net £8,000 dividends £51,037 net £10,000 dividends £52,362 net £15,000 dividends £55,674 net £20,000 dividends £58,987 net £30,000 dividends £65,612 net £40,000 dividends £72,237 net £50,000 dividends £78,862 net

£65,000 salary + dividends

£750 dividends £52,234 net £1,500 dividends £52,730 net £2,500 dividends £53,393 net £4,000 dividends £54,387 net £5,000 dividends £55,049 net £6,000 dividends £55,712 net £8,000 dividends £57,037 net £10,000 dividends £58,362 net £15,000 dividends £61,674 net £20,000 dividends £64,987 net £30,000 dividends £71,612 net £40,000 dividends £78,237 net £50,000 dividends £84,862 net

£75,000 salary + dividends

£750 dividends £58,234 net £1,500 dividends £58,730 net £2,500 dividends £59,393 net £4,000 dividends £60,387 net £5,000 dividends £61,049 net £6,000 dividends £61,712 net £8,000 dividends £63,037 net £10,000 dividends £64,362 net £15,000 dividends £67,674 net £20,000 dividends £70,987 net £30,000 dividends £77,612 net £40,000 dividends £84,237 net £50,000 dividends £90,862 net

How dividend tax works in the UK

Dividends are taxed separately from salary. You have a £500 dividend allowance (2025-26) — the first £500 of dividend income is tax-free, regardless of your total income. Above the allowance, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate), depending on your total income including salary.

For company directors taking a combination of minimum salary and dividends, the optimal strategy is typically to pay yourself up to the NI threshold (£12,570) as salary, then take the remainder as dividends — avoiding NI on the dividend portion while still qualifying for state benefits.

Note: Dividends do not attract National Insurance, making them more tax-efficient than salary above the personal allowance for owner-managed businesses. Dividends above £500 must be declared via Self Assessment.

Dividend allowance 2025: reduced to £500 — see how the reduction from £2,000 to £500 affects your tax bill.