See what you actually keep from dividends after tax: net dividend, net yield on your investment and monthly passive income. Enter a gross amount, a dividend per share, or a yield — with the 2026/27 £500 allowance and your tax band.
Enter details
£
£
Used for the net yield. In 'Yield' mode, gross dividend = investment × yield.
£500 allowance is applied at 0%, then your band rate on the rest. ISA/pension = tax-free.
=Net dividend/ year
£2,731
Gross dividend£3,000
Dividend tax10.75%−£269
Net dividend£2,731
Net yield4.55%
Monthly income£228
Net yieldon amount invested
4.55%
Net dividend: £2,731 · Net yield: 4.55% · Monthly income: £228
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Last updated: 12 July 2026. Uses the 2026/27 rules: a £500 dividend allowance taxed at 0%, then 10.75% (basic) / 35.75% (higher) / 39.35% (additional) — the basic and higher rates rose 2 points from 6 April 2026. Dividends inside an ISA or pension are tax-free. Source: GOV.UK — Tax on dividends. Not tax advice.
⚖︎ Results are for informational purposes and do not constitute tax advice. For specific situations, consult a licensed accountant or the relevant tax authority.
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iHow it is calculated
The first £500 of dividends is taxed at 0% (the dividend allowance). Dividends above that are stacked on top of your other income and taxed at the rate of the band they fall into: basic 10.75%, higher 35.75%, additional 39.35%. This tool shows what you keep — net dividend, net yield (net ÷ your investment) and monthly income — not just the tax due like a plain dividend-tax calculator. Held in an ISA or pension? Pick ISA and it's tax-free.
net = gross − (gross − £500) × band rate · net yield = net ÷ investment
A basic-rate investor with £3,000 in dividends: £500 tax-free, £2,500 taxed at 10.75% = £268.75, so you keep £2,731. On a £60,000 holding that's a net yield of about 4.6% and roughly £228/month. A higher-rate investor on the same £3,000 keeps about £2,106 (35.75% on the £2,500).
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?Frequently asked questions
What are the UK dividend tax rates for 2026/27?
After a £500 tax-free allowance, dividends are taxed at 10.75% (basic rate), 35.75% (higher rate) or 39.35% (additional rate). The basic and higher rates both rose by 2 percentage points from 6 April 2026.
How much is the dividend allowance?
£500 for 2026/27 — the first £500 of dividend income is taxed at 0%. It still uses up part of your basic-rate band, so it isn't a pure exemption for higher earners.
How do I work out my net dividend?
Net = gross − tax, where tax = (gross − £500) × your band rate. Net yield = net dividend ÷ the amount invested. Monthly income = net ÷ 12. This calculator shows all three.
How is this different from a dividend tax calculator?
A dividend-tax calculator tells you the tax you owe. This one tells you what you keep and the net yield on your money — the investor's view — plus your monthly passive income. Enter dividends per share or a yield, which a plain tax tool doesn't.
Which band applies to my dividends?
Dividends sit on top of your other taxable income. If your total income keeps you within the basic-rate band (up to £50,270), the basic 10.75% applies; higher-rate band up to £125,140 is 35.75%; above that is 39.35%. Pick the band that matches your total income.
Are dividends in an ISA or pension taxed?
No. Dividends received inside a Stocks & Shares ISA or a pension are completely tax-free and don't use your allowance. Select 'ISA / pension' and the tool returns the full gross as net.
What net yield do my shares give me?
Net yield = net dividend ÷ the value invested. For example, £2,731 net on a £60,000 holding is about 4.6%. You can also enter the gross yield directly and the tool derives the gross dividend, then the net.
Does the calculator handle dividends that straddle two tax bands?
It applies a single band you select, which is accurate for most investors. If your dividends span basic and higher rate, split them and run each part, or use the band that covers most of the income for a close estimate.
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