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    Dividend Tax Calculator (UK, 2024/25 & 2025/26)

    Work out dividend tax after your allowance, alongside your salary and other income. Free, no signup.

    Guidance, not advice. This calculator runs the rules as published, it doesn't assess your circumstances. Your actual tax may be affected by factors it doesn't cover (allowances used elsewhere, reliefs, marriage allowance, scheme-specific adjustments). Always seek financial or tax advice from your accountant, or contact HMRC. Read our editorial scope →

    Dividend Details

    £

    All dividend income for the tax year

    Tax Calculation

    Allowances Applied

    Personal Allowance Used£0.00
    Dividend Allowance Used£0.00
    Taxable Dividends£0.00

    Tax by Band

    No taxable dividends after allowances

    Total Dividend Tax

    £0

    Net Dividend (After Tax)

    £0

    Need more detail? Use Full Mode to add salary, savings and other income.

    How UK dividend tax works

    The Dividend Allowance

    Everyone can receive up to £500 in dividends tax-free for 2024/25 and 2025/26 (reduced from £1,000 in 2023/24 and £2,000 in 2022/23). Dividends within this allowance still count toward your total income but are taxed at 0%.

    How dividends interact with your other income

    Dividends sit on top of your other income when calculating which tax band applies. If your salary uses up your basic rate band, your dividends will be taxed at the higher rate. This "stacking" is crucial for directors and contractors planning their extraction strategy.

    Current dividend tax rates

    • Basic rate: 8.75% (on dividends within the basic rate band)
    • Higher rate: 33.75% (on dividends within the higher rate band)
    • Additional rate: 39.35% (on dividends above £125,140)

    These rates apply to rest-of-UK taxpayers (England, Wales and Northern Ireland).

    What this calculator does well

    Company directors

    Quick estimates for withdrawing dividends from your limited company

    Contractors

    Decide between salary and dividend splits for optimal tax efficiency

    Band stacking

    Shows how other income affects your dividend tax band

    Marginal rates

    Calculates your marginal rate on the next pound of dividends

    Frequently Asked Questions

    Salary vs Dividends: What's the best mix?

    Want to see how salary vs dividends change your overall take-home? Our Salary vs Dividend tool models different extraction strategies for company directors.

    Use Salary vs Dividend Tool

    Related calculators and resources

    Assumptions used in this calculation (click to expand)

    What this calculator assumes

    • UK-resident individual taxpayer.
    • Salary + dividends are the only income sources unless otherwise modelled.
    • Personal allowance is allocated against salary first, then against dividends.
    • Dividend allowance is a zero-rate band, not a deduction — it still uses up the relevant tax band.

    Not included in this calculation

    • Scottish income tax bands (dividends use rUK rates everywhere in the UK).
    • ISA-wrapped or pension-wrapped dividends (tax-free — see /isa-vs-gia).
    • Stock dividends or non-cash distributions.
    • Close company loans-to-participators (s.455 charge).

    Statutory basis

    • ITTOIA 2005 Pt 4 Ch 3 (dividend income)
    • ITA 2007 ss.13–13A (dividend rates and allowance)
    • FA 2023 (allowance reduction)
    How this is calculated (click to show the formula)

    Dividend tax computation

    Tax = max(0, Dividends − Dividend allowance) × rate-by-band (8.75% / 33.75% / 39.35%)

    Dividends sit on top of other taxable income. The dividend allowance is applied first, then the remainder is taxed at the basic / higher / additional dividend rate depending on which income tax band it falls into.