Want to know how much potential tax on your dividend income?
Find out how much Dividend tax you may have to pay, based on your current salary and annual dividend payments.
Remember that any of the results shown are purely an estimation and personal circumstances need to be taken into consideration before an accurate estimate can be given, please ensure that you have read our details and assumptions section below. Nordens accepts no responsibility for any action taken by using our calculator and the results provided. All results should be used as a guide and professional advice should be taken from a qualified accounting professional before taking any action.
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Details & Assumptions
Our Dividend Tax calculator is relevant to those who are looking to pay themselves a balance of Salary and Dividends, for simplicity we have used the following assumptions:
- You live in England or Wales and are subject to UK tax.
- The full UK Standard Personal Allowance rate has been applied, as shown here.
- You do not have any other income streams such as rental or investment income.
- Income Tax and Employer National Insurance contributions have not been included in this calculation, use our Income Tax Calculator.
The UK Standard Personal Allowance is tapered on income over a £100,000. This means If your income is greater than £100,000, your personal allowance is cut by £1 for each £2 you earn above this threshold. At a personal income level of £125,140, your entire personal allowance would have been removed.
Tax on dividends is calculated pretty much the same way as tax on any other income received, these utilise the income tax bands with dedicated dividend tax rates over the allocated allowance. For full details of the dividend tax rates and the current dividend allowance please click here.