Dividend tax calculator - Which? (2024)

Use our 2023-24 and 2022-23 dividend tax calculator to work out how much taxyou'll pay on the dividends you earn from shares

JW

Josh WilsonSenior researcher & writer

Dividends are paid to investors who own shares in a company - they are a distribution of the profits a company has made.

If you hold shares outside of a stocks and shares Isa, you'll have to pay tax on the dividends you earn if they exceed your dividend allowance (£2,000 in 2022-23; £1,000 from 2023-24).

You can find out everything you need to know about it in our guide to dividend tax.

This calculator helps you work out how much dividend tax you'll pay on the dividends earned during the 2023-24 tax year which starts on 6 April 2023. It can also help you work out your bill for previous tax years.

Dividend tax calculator

To use our calculator, simply enter in the amount of dividends you think you'll earn over the 2023-24 or 2022-23 tax year.

You'll also need to enter in your gross income for the year so that we can correctly work out what rate of dividend tax you'll pay.

If you want to work out your bill for previous tax years, use the 'tax year' drop down to navigate.

What is the dividend allowance in 2022-23 and 2023-24?

In the 2022-23 tax year, you won't need to pay any tax on dividend income on the first £2,000 you receive - this is your dividend allowance. It's the same as it was in 2021-22.

The allowance was cut from £5,000 in 2017-18.

From 2023-24 the allowance will be cut to £1,000.

What are the dividend tax rates for 2022-23 and 2023-24?

Above the dividend tax-free allowance, you pay dividend tax based on the rate you pay on your other income - known as your 'tax band'.

So for 2022-23 and 2023-24, you'll pay:

• Basic-rate taxpayers pay 8.75% on dividends
• Higher-rate taxpayers pay 33.75% on dividends
• Additional-rate taxpayers pay 39.35% on dividends

What were the dividend tax rates in 2021-22?

The dividend tax rates for the 2021-22 tax year were as follows:

• Basic-rate taxpayers pay 7.5% on dividends
• Higher-rate taxpayers pay 32.5% on dividends
• Additional-rate taxpayers pay 38.1% on dividends.

Read our guide on dividend tax to find out more about how the tax is applied.

Use our jargon-free calculator to complete and securely submit your tax return direct to HMRC.

Use our jargon-free calculator to complete and securely submit your tax return direct to HMRC.