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 is in pounds sterling.

Updated April 2018: From 6 April 2018 the Dividend Allowance reduced from £5,000 to £2,000.

Updated April 2024: From 6 April 2024 the Dividend Allowance reduced from £1,000 to £500.

Dividends Calculator
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

Dividends Calculator Results
Description Current Rate Before 06/04/2022 Notes
Dividend Tax Rate (%) 8.75% 7.5% Dividend Tax Rate based on your Income Band
Taxable Amount Taxable amount (from 06/04/2024 first £500 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 £500 tax free) Rate before 06/04/2022
Additional Rate 39.35 % 38.1 %
Higher Rate 33.75 % 32.5 %
Basic Rate 8.75 % 7.5 %

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