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Dividend Tax Calculator (UK)
Free UK dividend tax calculator for 2024/25. Enter your salary and dividend income to calculate the tax owed on dividends across basic, higher, and additional rate bands. Includes the £500 dividend allowance. Shows effective rate and take-home amount. Not tax advice.
Your PAYE salary, self-employed profit, or other taxable income this year. Enter 0 if dividends are your only income.
Total dividend income received this tax year (before tax).
Enter your dividend income above to calculate your tax liability.
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Frequently Asked Questions
What is the dividend allowance for 2024/25?
The dividend allowance for 2024/25 is £500. This means the first £500 of dividend income each year is tax-free, regardless of which income tax band you fall into. Above this, dividends are taxed at your dividend tax rate.
What are the UK dividend tax rates for 2024/25?
Dividend tax rates for 2024/25: 8.75% for basic rate taxpayers (total income up to £50,270), 33.75% for higher rate taxpayers (£50,271 to £125,140), and 39.35% for additional rate taxpayers (income above £125,140). These apply to dividends above the £500 allowance.
Do I pay tax on dividends as a limited company director?
Yes. Dividends paid to you as a director-shareholder are taxable personal income. Many directors pay themselves a small salary (up to the personal allowance or NI threshold) and take the remainder as dividends to minimise tax. This calculator shows the dividend portion only.
How does dividend tax interact with my salary?
Dividend income is added on top of your other income (salary, self-employment) to determine which tax band it falls into. For example, if your salary is £40,000 and you take £20,000 in dividends, £10,270 of the dividends fall in the basic rate band and £9,730 in the higher rate band.
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