Dividend tax calculator
Our Dividend Tax Calculator will show you how much income tax you should pay depending on your salary and dividend income before tax.
Please consider these points before using the calculator:
- Do not account for additional income sources such as savings. If you have extra sources of income, consult your accountant to provide the calculation. That way, you will keep your calculations simple.
- The 2020-2021 dividend tax rates are the same as the previous year:
- Basic (7.5%): If your 2020-2021 (and 2019-2020) income is £0 – £37,500.
- Higher (32.5%): If your 2020-2021 (and 2019-2020) income is £37,501 – £150,000.
- Additional (38.1%): If your 2020-2021 (and 2019-2020) income is above £150,000.
- The 2020-2021 Personal Allowance is £12,500. We have considered tax code 1250L in our calculator.
- If your earnings are above £100,000 within the tax year, your Personal Allowance benefit is reduced by £1 for every £2 of your earnings above the threshold. Therefore, your Personal Allowance will be done when your earnings reach £125,000.
- You will not pay tax on your first £2,000 of dividend income because of the dividend allowance.
- Our calculation does not apply to small limited companies since they cannot claim the employment allowance. Eligible companies can reclaim the Employers’ NIC sum.
- Our calculator will provide you results. However, you should consult your accountant before making any financial decisions.
Dividend Tax Calculator
Take home more of what you earn
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