Dividend tax calculator

Dividends are paid to investors who own shares in a company - they are a distribution of the profits a company has made.

If you hold shares outside of a stocks and shares Isa, you'll have to pay tax on the dividends you earn if they exceed your dividend allowance (£1,000 in 2023-24; £500 in 2024-25).

You can find out everything you need to know about it in our guide to dividend tax.

This calculator helps you work out how much dividend tax you'll pay on the dividends earned during the 2024-25 tax year which started on 6 April 2024. It can also help you work out your bill for previous tax years.

Dividend tax calculator

To use our calculator, simply enter in the amount of dividends you think you'll earn over the 2024-25 or previous tax years.

You'll also need to enter in your gross income for the year so that we can correctly work out what rate of dividend tax you'll pay.

If you want to work out your bill for previous tax years, use the 'tax year' drop down to navigate.

What is the dividend allowance in 2023-24 and 2024-25?

In the 2024-25 tax year, you won't need to pay any tax on the first £500 of dividends you recieve.

The allowance has been cut repeatedly: it was £1,000 in 2023-24 and £2,000 in 2022-23.

What are the dividend tax rates for 2023-24 and 2024-25?

Above the dividend tax-free allowance, you pay dividend tax based on the rate you pay on your other income - known as your 'tax band'.

So for 2023-24 and 2024-25, you'll pay (unchanged from 2022-23):

• Basic-rate taxpayers pay 8.75% on dividends 
• Higher-rate taxpayers pay 33.75% on dividends 
• Additional-rate taxpayers pay 39.35% on dividends 

Read our guide on dividend tax to find out more about how the tax is applied.