Dividends Calculator

When a payment is made by a company to its shareholders, the payment that has been made is a share of the company's profits.

Starting from the 6th of April in 2016, the way in which tax is calculated in order to pay tax on dividends, is being changed.

See the table below the calculator in order to see how annual gross amounts of income determine which tax rate applies.

Note that the currency for all of the calculations that you make below are calculated in pounds sterling.

You are able to save a table by simply clicking the "Add to Table" button below.

Dividend Amount The value of dividends received
Income Tax Band Select the Tax Band from the drop down or enter your Income in the box below
Income Before Tax Annual Gross Pay before deductions
Description Current Rate Before 06/04/2016 Notes
Dividend Tax Rate (%) 7.5% 0% Dividend Tax Rate based on your Income Band
Taxable Amount Taxable amount (from 06/04/2016 first £5,000 tax free)
Dividend Tax due Tax due based on the Taxable Amount and Tax Rate
Amount after tax deduction Nett Amount after tax is deducted

Income Bands and Tax Rates
Income Band (Annual Income) Current Rate (first £5,000 tax free) Rate before 06/04/2016
Additional Rate (over 150,000) 38.1 % 30.56 %
Higher Rate (32,001 up to 150,000) 32.5 % 25 %
Basic Rate (up to 32,000) 7.5 % 0 %

You may also like to try our other Tax calculators:

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