Dividend tax calculator
Calculate the tax due on dividends from your own company or an investment account, after salary, other income and the dividend allowance.
Other settings
Results
| Tax calculation | Amount | |
|---|---|---|
| Dividends | £0 | |
| Total income | £0 | |
| Taxable income before dividend allowanceTaxable income | £0 | |
| Total income tax | £0 | |
| Net dividend | £0 | |
| Total take home | £0 |
Dividend rates and allowance
| Tax year | Dividend allowance | Basic rate | Higher rate | Additional rate |
|---|---|---|---|---|
| 2024/25 | £500 | 8.75% | 33.75% | 39.35% |
| 2025/26 | £500 | 8.75% | 33.75% | 39.35% |
| 2026/27 | £500 | 10.75% | 35.75% | 39.35% |
How to use the dividend tax calculator
Enter your annual dividends, salary, and other taxable income to calculate how much dividend tax may be due. This is useful if you are a company director taking dividends from your own company, or if you receive dividends from shares and funds outside an ISA.
Steps
- Enter your annual dividend income.
- Enter your annual salary before tax.
- Add other taxable income such as pensions, rental profit, or self-employment profit.
- Check the tax year and other settings, then review the tax calculation to see the breakdown of the taxes owed and the total take-home pay.
Input notes
- Dividend income
- Use the total taxable dividends received in the tax year. Leave out dividends from ISAs.
- Salary
- Use gross employment income before tax.
- Other income
- Use other taxable non-dividend income such as pension income, rental profit, or self-employment profit.
- Tax year
- The calculator uses the personal allowance, dividend allowance, and dividend tax rates for the selected tax year.
- Scottish residence
- Choose yes if you are a Scottish tax payer.
What the results mean
- Dividend tax is the tax due on the dividend income.
- Total tax combines the tax on salary, other income, and dividends.
- Net dividend is the dividend income left after the dividend tax.
- Total take home is your total income after all income tax.
- The calculation table shows the full breakdown of how the different types of income are taxed in the respective tax bands.
Common questions
Does the dividend allowance reduce taxable income?
No. The dividend allowance taxes eligible dividends at 0%, but the dividends still use up some of the tax bands when working out which rate applies to the rest of the income.
Why does salary affect dividend tax?
Salary and other non-dividend income are counted before dividends. They can use the personal allowance and basic rate band, which can push dividends into higher tax bands.
Are ISA dividends included?
No. Dividends from shares held in an ISA are tax-free and should not be included in the dividend income field.
Can I use this calculator for investment account dividends?
Yes. Enter dividends from shares, funds or investment trusts held outside ISAs and pensions. Do not include dividends from an ISA because they are tax-free.
Does the calculator work for Scottish taxpayers?
Yes. Scottish income tax rates can apply to salary and other non-dividend income, but dividend tax rates are the same across the UK.
Will this match my Self Assessment exactly?
It should give a useful calculation for common dividend scenarios, but your tax return can be affected by things the calculator does not include, such as pension relief, Gift Aid, savings interest, losses, payments on account or other adjustments.
When do I need to tell HMRC about dividends?
You may need to report dividends if they are above the dividend allowance or if HMRC asks you to complete a Self Assessment tax return. Company directors who take dividends often report them through Self Assessment.
Assumptions
- Salary income is assumed to have the correct tax deducted at source.
- Other income includes other untaxed income subject to the selected UK or Scottish non-dividend income tax rates.
- The Scottish setting applies Scottish non-savings, non-dividend income tax rates to salary and other income. Dividend tax rates remain UK-wide.
- The personal allowance is reduced where total income exceeds the taper threshold for the selected tax year.
- The dividend allowance is applied to the first dividends left after any remaining personal allowance.
- The calculator excludes savings interest income.
- The calculator does not calculate pension relief, gift aid, marriage allowance, or Self Assessment payments on account.
Source notes
- GOV.UK Tax on dividendsDividend allowance and dividend tax rates for the current tax year.
- GOV.UK Income Tax rates and Personal AllowancesPersonal allowance and income tax band rules.
- Scottish Government income tax rates and bandsScottish non-savings, non-dividend income tax rates and bands.
- GOV.UK Income Tax rates and allowances for current and previous tax yearsPublished tables for current and previous tax year dividend allowances and rates.