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Dividend tax calculator

Use our 2021-22 dividend tax calculator to work out how much tax you'll pay on the dividends you earn from shares from 6 April 2021.

In this article
Dividend tax calculator 2021-22 and 2022-23 What is the dividend allowance in 2021-22?
What are the dividend tax rates in 2021-22? What will the dividend tax rates be in 2022-23?

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. 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 you'll earn in the 2021-22 tax year, which started on 6 April 2021.

Dividend tax calculator 2021-22 and 2022-23

To use our calculator, simply enter in the amount of dividends you think you'll earn over the 2020-21 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 know how much tax you'll pay in future tax years, or need to work out your bill for previous tax years, use the 'tax year' drop down to navigate. 

What is the dividend allowance in 2021-22?

You can earn up to £2,000 in dividends in the 2021-22 tax year before you pay any dividend income tax. 

This allowance is the same as it was in 2020-21.

 

What are the dividend tax rates in 2021-22?

The amount of tax you pay on dividends is the same as it has been for the past three tax years.

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

The rates remain unchanged compared to 2020-21. So if you're working out your tax return for the last tax year, the same calculations apply. 

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

What will the dividend tax rates be in 2022-23?

In September 2021, the government announced that it will raise dividend tax rates by 1.25 percentage points from 6 April 2022. 

So from 2022-23, the dividend tax rates will change.

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

 

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