How is UK income tax calculated?

UK income tax is calculated using PAYE bands: 0% on the personal allowance (12,570), 20% basic rate (12,571-50,270), 40% higher rate (50,271-125,140), and 45% additional rate above 125,140 for 2025/26.

How much stamp duty will I pay?

Stamp duty in England depends on the property price and whether you are a first-time buyer. First-time buyers pay 0% up to 425,000. Standard rates start at 0% up to 250,000, then 5% up to 925,000.

How much is National Insurance in the UK?

Employee National Insurance is charged at 8% on earnings between 12,570 and 50,270, and 2% above that threshold for 2025/26.

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Dividend Tax Calculator 2025/26

Find out exactly how much tax you owe on UK dividends - accounting for your £500 allowance and the band your other income places you in.

Your income

Total dividends received (£)

Include dividends from limited company, shares, funds (outside ISAs).

Other taxable income (salary, rent, self-employed) (£)

Gross (before tax). Determines which band your dividends are taxed at.

2025/26 dividend rates

Basic rate band: 8.75%

Higher rate band: 33.75%

Additional rate band: 39.35%

Rates and optimal extraction

Ltd Company Tax

Corporation tax and extraction

How UK dividend tax works

Dividends are taxed after your other income. So if you earn £30,000 salary and take £20,000 in dividends, you are a basic-rate taxpayer on the first chunk of those dividends (up to the £50,270 threshold) and higher-rate on the rest. The £500 dividend allowance applies inside whatever band you are in - it is not a deduction, it is a 0% slice at the start of your dividend income.

Dividends inside an ISA or SIPP are completely tax-free. If you are a company director, the optimal split for 2025/26 is usually a salary at the primary threshold (£12,570) and the rest as dividends - this keeps corporation tax efficient and avoids employer NI.