Answers · UK 2025/26
How much tax will I pay on £65,000 of dividends in 2026/27?
On £65,000 of dividends in 2026/27, the first £500 is covered by the dividend allowance. The remaining £64,500 is taxed at 10.75% if you are a basic-rate taxpayer (£6,933.75), 35.75% if higher-rate (£23,058.75), or 39.35% if additional-rate (£25,380.75).
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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 £65,000 of dividends, £64,500 is taxable after the allowance. For most company directors, a salary plus £65,000 of dividends will comfortably clear the £50,270 higher-rate threshold, meaning the great majority of this dividend income is taxed at 35.75%. If total income (salary plus dividends) also crosses £100,000, the personal allowance begins to taper away at £1 for every £2 of income above that point, which can indirectly increase the effective tax rate on income around this level even though the dividend rates themselves stay the same. £65,000 of dividends is also a useful point of comparison against £50,000: the dividend tax bill for a higher-rate taxpayer rises from £17,696.25 to £23,058.75, an increase of £5,362.50 on £15,000 of extra dividends -- exactly 35.75% marginal, confirming that once fully in the higher band, every additional pound of dividends is taxed at a flat 35.75% regardless of how much has already been withdrawn that year. Use the dividend-tax calculator to see the exact band split for your situation.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.