Dividends Tax Calculator
2024/25 Rules
Includes the new £500 Dividend Allowance.
Tax Bands
Automatically calculates Basic, Higher & Additional rates.
Accurate
Uses HMRC's official tax logic for accuracy.
Understanding the Dividends Tax Calculator
If you are a company director in the UK, taking money out of your business as dividends is often more tax-efficient than a high salary. Our Dividends Tax Calculator helps you estimate exactly how much tax you owe.
Dividend Tax Rates (2024/25):
Tax-Free Allowance: The first £500 of dividends are tax-free.
Basic Rate (8.75%): Applies if your total income is below £50,270.
Higher Rate (33.75%): Applies if your total income is between £50,271 and £125,140.
Additional Rate (39.35%): Applies to income over £125,140.
How it works: Your salary uses up your Personal Allowance (£12,570) first. Any remaining allowance is applied to your dividends. After that, the relevant tax rates are applied.