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UK Dividend Tax Calculator

Estimate your dividend tax liability for the 2024/25 tax year.

£

Salary, rental income, etc. (Used to determine tax bands)

£
info Allowance for 2024/25 is £500 (Previously £1,000).

Net Dividend Income

£4,650

Tax Payable

£350

Allowance Used

£500

Taxable Portion

£4,500

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Tax Breakdown

Basic Rate (8.75%) £350.00
Higher Rate (33.75%) £0.00
Additional Rate (39.35%) £0.00
Total Dividend Tax £350.00

How Dividend Tax Works (24/25)

In the UK, you don't pay tax on dividend income that falls within your Personal Allowance (£12,570). You also get a specific Dividend Allowance each year.

Important Update:

For the 2024/25 tax year, the Dividend Allowance has been reduced to £500 (down from £1,000 in 23/24).

Dividend Tax Rates

Band Total Income Rate
Basic Up to £50,270 8.75%
Higher £50,271 - £125,140 33.75%
Additional Over £125,140 39.35%

How this calculator works

The calculator estimates dividend tax by combining your dividend income with any other income, applying the dividend allowance and then taxing the remaining dividend amount across the relevant UK bands.

Assumptions used

  • The result depends on the entered dividend income, other taxable income and current UK dividend tax rules.
  • The tool applies a simplified allowance and band interaction for planning purposes.
  • It does not model every company-owner scenario, director salary strategy or wider tax planning consideration.
  • Use the result as an estimate rather than a substitute for year-end tax calculations.

Frequently asked questions

Why does other income matter?

Because dividends sit on top of your other taxable income. Salary, pension income or rental income can push dividends into a higher dividend tax band.

Is the dividend allowance a tax-free band?

It is an allowance for a limited amount of dividend income, but the wider tax band position still matters once that allowance has been used.

Can business owners rely on this alone?

No. Director remuneration strategy can involve salary, dividends, corporation tax and pension considerations that go beyond a simple estimate.

What should I compare it with?

Compare it with your accountant's numbers or HMRC-aligned year-end calculations before making withdrawal or budgeting decisions.