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Dividend Tax Calculator

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How to Use

Enter your dividend income, other income (salary/pension), and the current dividend allowance to calculate the tax owed on dividends. The dividend allowance for 2024/25 is £500. Dividends within the basic rate band are taxed at 8.75%, at 33.75% in the higher rate band, and 39.35% for additional rate taxpayers. Dividends paid from a limited company are normally more tax-efficient than salary above the personal allowance.

Frequently Asked Questions

Frequently Asked Questions

The dividend allowance is £500 for 2024/25. Dividends within this allowance are tax-free regardless of your tax band.