Dividend tax rates and allowance

The dividend allowance and the three rates, one row per tax year, with the source each figure was read from.

The dividend allowance is not an exemption. It is a nil rate band, so the dividends covered by it still use up room in whatever band they fall in, and they still push the dividends above them into the next rate. Treating it as an exemption understates the tax for anyone near a threshold.

These are the figures the calculator on this site applies. It reads the same table this page prints, so a rate on this page cannot quietly differ from the figure in a report.

Dividends go on the main Self Assessment return and are treated as the top slice of income, which is why the rate that applies depends on the wages, pension and interest sitting underneath them. A Scottish taxpayer pays these same rates in the same UK wide bands, because the Scottish rates apply to earnings and not to dividends.

Every year held

The dividend allowance and the three dividend rates. Dividends are treated as the top slice of income, so the rate depends on what sits underneath them.
Tax year	Dividend allowance	Ordinary rate	Upper rate	Additional rate	Where the figure comes from
2027/28	£500	10.75%	35.75%	39.35%	Savings rates rise 2pp to 22%, 42% and 47% from April 2027, announced at the Autumn Budget 2025. Dividend figures carried forward from 2026/27 and the basic rate limit held at £37,700 by the threshold freeze. This is the gov.uk "Tax on savings interest" page, not the Budget document: check it when HMRC publish the 2027/28 rates.
2026/27	£500	10.75%	35.75%	39.35%	Dividend ordinary rate 10.75% and upper rate 35.75% from 6 April 2026, announced at Budget 2025 and legislated in Finance Bill 2025-26 amending ITA 2007 s8; the additional rate stays at 39.35% and the allowance at £500. This is the gov.uk measure "Income Tax: Changes to Tax rates for Property, Savings and Dividend Income" of 27 November 2025, not the Budget document, and HMRC's rates table carries the same figures.
2025/26	£500	8.75%	33.75%	39.35%	Dividend allowance £500 and rates 8.75%, 33.75% and 39.35%, all unchanged from 2024/25. Read on HMRC's "Income Tax rates and allowances for current and previous tax years", which holds this year in full.
2024/25	£500	8.75%	33.75%	39.35%	Dividend allowance halved again to £500 from 6 April 2024, the second step of the reduction announced at the Autumn Statement of 17 November 2022. Rates unchanged at 8.75%, 33.75% and 39.35%. Read on HMRC's "Income Tax rates and allowances for current and previous tax years".
2023/24	£1,000	8.75%	33.75%	39.35%	Dividend allowance halved to £1,000 from 6 April 2023, announced at the Autumn Statement of 17 November 2022. Rates unchanged at 8.75%, 33.75% and 39.35%. This is the gov.uk measure "Income Tax: Reducing the Dividend Allowance"; HMRC's table of current and previous years carries the same figures.
2022/23	£2,000	8.75%	33.75%	39.35%	Dividend rates rose 1.25 percentage points to 8.75%, 33.75% and 39.35% from 6 April 2022, announced at Autumn Budget 2021; the allowance stayed at £2,000. Both sentences are what the gov.uk measure page cited says, not the Budget document. The rates are ITA 2007 s8 as substituted by Finance Act 2022 s4(1) for 2022/23 and subsequent tax years, read at legislation.gov.uk/ukpga/2007/3/section/8/2022-04-06.
2021/22	£2,000	7.5%	32.5%	38.1%	Dividend allowance £2,000 and dividend rates 7.5%, 32.5% and 38.1%. These are the figures the gov.uk measure "Increase of the rates of Income Tax applicable to dividend income" (27 October 2021) states as the rates in force before it took effect, and it names the allowance as having been £2,000 since April 2018. HMRC's own rates table does not run back this far.
2020/21	£2,000	7.5%	32.5%	38.1%	Dividend and savings figures unchanged from 2019/20. gov.uk "Rates and allowances for Income Tax".
2019/20	£2,000	7.5%	32.5%	38.1%	Dividend and savings figures unchanged from 2018/19. gov.uk "Rates and allowances for Income Tax".
2018/19	£2,000	7.5%	32.5%	38.1%	Dividend allowance £2,000 and dividend rates 7.5%, 32.5% and 38.1%; savings 20%, 40% and 45% with a £1,000/£500 personal savings allowance and the £5,000 starting rate band. gov.uk "Rates and allowances for Income Tax", HMRC's table of current and previous years.

Where the dividend table itself carries no source, the row shows the citation the income tax table holds for that year's dividend figures, which is where the provenance for those years is written down today.

Every row here carries the source the figure was read from. A row that carries none is not printed, and a short line says which year was left out instead. That is deliberate. A rate with nothing behind it is the one most likely to be wrong and the hardest for a reader to check.

The other rate tables

Capital Gains Tax rates and allowancesThe annual exempt amount and the two rates, with the 30 October 2024 change named on the year it fell in. Income tax allowances and limitsThe personal allowance, the higher rate limit and the savings allowances, year by year. Take home pay rates and thresholdsIncome tax bands for the rest of the UK and for Scotland, National Insurance and student loans. Stamp duty rates and bandsSDLT, LBTT and LTT, one row per dated schedule, with the statute that set it.

All rates and allowances

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