Dividend Tax Rates

There are three rates of dividend tax payable, depending on the tax bands you fall in to. You won’t pay tax on the first £2,000 of dividends that you receive in the tax year.

Tax band Tax rate on dividends over £2,000

• Basic rate 7.5%
• Higher rate 32.5%
• Additional rate 38.1%

Dividends that fall within your Personal Allowance do not count towards the £2,000 dividend allowance.