Dividend Tax Calculator

Calculate tax on dividend income in Scotland

Enter Your Income

First £500 is tax-free

Net Income

£36,297.13

After all tax

Total Tax

£3,702.88

9.26% effective rate

Dividend Tax

£1,306.25

On £9,500

Income Breakdown

Other Income:£30,000
Dividend Income:£10,000
Tax-Free Dividend Allowance:£500
Total Income:£40,000

Tax Breakdown

Tax on Other Income
£8,258 @ 13.750000000000002%£1,135.48
£9,172 @ 13.750000000000002%£1,261.15
Subtotal:£2,396.63
Tax on Dividends
£9,500 @ 13.750000000000002%£1,306.25
Subtotal:£1,306.25
Total Tax:£3,702.88

Note: Scottish dividend tax rates (2025/26): 8.75% (Starter), 13.75% (Basic/Intermediate), 39.13% (Higher), 44.13% (Top). Dividend rates differ from non-dividend income. Consult a tax advisor for personal tax planning.

How to Use

Enter your employment income and dividend income to calculate the total tax you'll owe. The calculator automatically applies the dividend allowance and Scottish tax rates.

Dividend Allowance (2025/26)

  • First £500 of dividend income is tax-free
  • Applies to all UK dividend income combined
  • You need to declare it on self-assessment if required

Scottish Dividend Tax Rates (2025/26)

  • Starter Rate (8.75%): First £12,570 of dividend income (above allowance)
  • Basic Rate (13.75%): £12,570 - £25,688
  • Intermediate Rate (13.75%): £25,688 - £43,662
  • Higher Rate (39.13%): £43,662 - £125,140
  • Top Rate (44.13%): Above £125,140

Important Notes

  • Dividends count as your top slice of income (layered on top of salary)
  • If your total income exceeds the higher rate threshold, dividends are taxed at higher rates
  • You must report dividend income on Self Assessment if required
  • Limited companies may have different treatment - consult a tax advisor