Dividend tax calculator
Tax on dividends on top of your other income in the current tax year, worked out band by band.
Your estimate
This calculator estimates income tax, not take-home pay or your full tax bill. It does not calculate National Insurance, student loan repayments or other deductions.
Enter your details above to see your estimate.
| A year | Income | Tax |
|---|
How your annual tax is worked out
Salary and other income use the tax bands first. Dividends are added above that income and taxed at the dividend rates. Each row shows which part of your income is covered.
| Step | Amount | Tax |
|---|
How dividend tax works
Dividends are taxed after all your other income. Your salary, pension and other taxable income use up the personal allowance and the tax bands first, and the dividends sit on top, so the rates depend on your total income. If your other income is below the personal allowance of , the unused part covers some of the dividends and they are not taxed at all.
The dividend allowance means the first of taxable dividends is taxed at 0%. It is not deducted from income: it still takes up its place in the bands, so it can push later dividends into a higher band. Above it, dividends are taxed at in the basic rate band, in the higher rate band and in the additional rate band. Dividends count as income for the withdrawal of the personal allowance above .
Scottish rates and bands apply to salary and other income only. Dividends use the UK bands and dividend rates for everyone. No National Insurance is charged on dividends. Tax on dividends is collected through Self Assessment, or through your tax code for smaller amounts. This page does not cover savings interest, which has its own allowance and is placed between other income and dividends.