Salary and Dividend Calculator 2017/18

Your income allowances change each April so if you are currently a recipient of dividends and non-dividend income, use our calculator below to estimate your annual tax liability. Enter your full annual salary and full annual dividends in the boxes below to calculate.

Dividend calculator

We have assumed a starting personal allowance of £11,500 as the most common 2017 - 2018 tax code is 1150L. By checking the above box to indicate you are eligible for Blind Person's Allowance, this calculator will allocate an additional £2,320 to your personal allowance.

Your annual salary

Your annual dividends

Tick this checkbox if you are entitled to blind person's allowance.

Whilst every care has been taken in producing this tool, this is no substitute for speaking with HMRC. Depending on your circumstances, you may be eligible for additional deductions and/or allowances.

This tool does not take into account National Insurance payments, Student loan repayments, Marriage Allowances or Married Couple's Allowances or any other allowances unless stated so.

What are the 2017/18 tax rules?

From April 2016, the Annual dividend Allowance replaces Dividend Tax Credits; a new personal allowance which means you won’t have to pay tax on the first £5,000 of dividends you receive each year. Dividend rates have also changed, and these are now payable on all dividends received over and above your first £5,000;

  • 7.5% on dividend income within the basic rate band
  • 32.5% on dividend income within the higher rate band
  • 38.1% on dividend income within the additional rate band

As before, there are some exemptions from dividend income which you can read more about here on the Gov website.

How are income taxes and dividend taxes calculated?

Your dividend income does impact your overall Personal Allowance and therefore will mean you will pay a higher incidence of tax if your total income is over £100,000. Your personal allowance of £11,500 (typical, 2017/18) is eroded at 50p for every £1 earned between £100,000 and £123,000 until there is no Personal Allowance available.

If you are not entitled to a Personal Allowance then you will pay tax on the additional £11,500 at a rate of 40% income tax, or the equivalent banded dividend tax for that level of income.

In the 2017/18 tax year, the applicable income tax bands are;

Band Taxable income Tax rate
Personal Allowance Up to £11,500 0%
Basic rate £11,501 to £45,000 20%
Higher rate £45,001 to £150,000 40%
Additional rate over £150,000 45%