Dividend Tax Calculator
Calculate your dividend tax liability based on your income, tax band, and the UK dividend allowance. Estimates for 2024/25 tax year.
Step 1: Income Details
UK Dividend Allowance
The dividend allowance is £500 for 2024/25 (reduced from £1,000). No tax is paid on dividend income within your allowance. The allowance counts towards your basic or higher rate band.
Step 2: Tax Calculation Options
Dividend Tax Rates 2024/25
Basic rate: 8.75%
Higher rate: 33.75%
Additional rate: 39.35%
Dividend allowance: £500 (no tax)
Dividend Tax Calculation Results
Total Dividend Tax Due
Detailed Tax Breakdown
| Component | Amount | Calculation | Tax |
|---|
How Dividend Tax is Calculated
1. Start with your total income (dividends + other income)
2. Subtract your personal allowance (£12,570)
3. Apply the dividend allowance (£500) tax-free
4. Remaining dividends are taxed at your marginal rate
Tax Band Comparison
| Tax Band | Rate | Income Range | Tax on £15,000 dividends | Net After Tax |
|---|
Scottish Tax Rates (Different)
Scottish taxpayers have different income tax rates but the same dividend tax rates as the rest of the UK. The Scottish starter rate (19%), basic rate (20%), intermediate rate (21%), and higher rate (42%) apply to non-savings income only.
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