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Dividend, Rental & Savings Changes

This calculator shows the extra tax due from the Budget 2025 increases to tax on dividends, rental income and savings interest. Dividend rates rose on 6 April 2026, and savings and rental income rates rise on 6 April 2027. It compares the 2025/26 rules with the rates once all the changes are in place.

£75,000
£20,000
£5,000
£12,000

Allowances used: £12,570 personal allowance (tapered above £100k total income), £500 dividend allowance, and £1,000 / £500 / £0 personal savings allowance depending on your income band. No property allowance is applied, as rental income is assumed to be shown net of expenses.

Headline Results

Total tax in 2025/26
From April 2027
Change
Dividend change
Savings interest change
Rental income change

Calculation Details


            

          


          

            

              
Rates used

              
    
                
  • Dividends: 8.75% / 33.75% / 39.35% in 2025/26, rising to 10.75% / 35.75% from 6 April 2026 (the additional rate stays at 39.35%).
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  • Savings & rental income: 20% / 40% / 45% until 5 April 2027, rising to 22% / 42% / 47% from 6 April 2027.
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  • Income tax bands unchanged for earnings: basic to £50,270, higher to £125,140.
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