Answers · UK 2025/26

How much tax will I pay on £45,000 of dividends in 2026/27?

On £45,000 of dividends in 2026/27, the first £500 is covered by the dividend allowance. The remaining £44,500 is taxed at 10.75% if you are a basic-rate taxpayer (£4,783.75), 35.75% if higher-rate (£15,908.75), or 39.35% if additional-rate (£17,510.75).

Last updated: 10 July 2026Last reviewed: 10 July 2026How we verify

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Dividends in 2026/27 have a tax-free dividend allowance of £500. Above that, dividends are taxed at 10.75% in the basic band, 35.75% in the higher band and 39.35% in the additional band, depending on which band the dividends fall into once stacked on top of your other income. On £45,000 of dividends, £44,500 is taxable after the allowance. A company director on a £9,100 salary with £45,000 of dividends has combined income of £54,100, which is above the £50,270 higher-rate threshold, so part of the dividends fall in the basic band and part in the higher band -- roughly £4,271 of the taxable dividend amount is taxed at 10.75% and the remaining £40,229 at 35.75%, giving a blended bill in between the pure-basic and pure-higher figures shown above. This blended-rate scenario is very common for directors taking dividends of this size, which is why modelling the exact split with a calculator matters more than relying on either headline figure alone.