Work out how much tax to pay on dividends during the 2024/5 tax year
More calculators and useful guides
- 2025-26 Dividend Calculator New
- 2023-24 Dividend Calculator
- 2022-23 Dividend Calculator
- Guide to dividends and how they are taxed
Please scroll down for tax tables and assumptions we’ve made.
Salary & Dividend Tax Calculator (2024-25)
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2024/5 Dividend Tax Rates
The rates are the same as 2023/24.
| Tax Band | 2023/24 and 2024/5 Tax Years | Tax Rate |
|---|---|---|
| Basic | £0 – £37,700 | 8.75% |
| Higher | £37,701 – £125,140 | 33.75% |
| Additional | £125,140 + | 39.35% |
The £500 dividend allowance
The first £500 of dividends are tax-free, thanks to the dividend allowance.
Confusingly, the allowance still takes up £500 of your income tax basic rate band.
The allowance has been reduced steadily over time. In 2023/4 it was £1,000.
How is your salary taxed in 2024/5?
Income Tax
- £0 – £12,570 – 0% tax-free Personal Allowance
- £12,571 – £50,270 – 20% basic rate
- £50,271 – £125,140 – 40% higher rate
- over £125,140 – 45% additional rate
The £12,570 Personal Allowance is eroded by £1 for every £2 you earn over the £100,000 threshold.
Employees’ National Insurance (paid by you)
- £12,570 – £50,270 – 8%
- over £50,270 – 2%
Employers’ National Insurance (paid by your company)
- over £9,100 – 13.8%
Dividend tax calculator – assumptions
We have made some assumptions to keep our calculator as simple as possible.
- The tax rates and bands used apply to England & Wales (not Scotland).
- You can only include dividends and salary. If you have other sources of income, from investments or rentals, please ask your accountant to create a personal calculation.
- The calculator assumes that your tax code is 1257L and you are eligible for the entire £12,570 Personal Allowance.
- Most small limited companies are not eligible to claim employers’ NICs back via the Employment Allowance so we have not included it. If your company can claim the EA, you can offset employers’ NICs up to £5,000 per year.
Our accountants have prepared and validated our calculations. However, please don’t rely solely on the information contained on this page. Talk to your accountant if you have any questions about salaries and dividends.