Dividend tax calculator

By:

James Knight

James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.

Updated: Oct 11, 2022

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The Invezz dividend tax calculator calculates what you’ll owe in tax on the dividends you collect from owning stock in a company. Keep reading to see how our dividend tax calculator works, and how it can help you.

How to use our dividend tax calculator

To use our dividend tax calculator, follow these steps:

1. Enter in the amount you’ve received in dividends each quarter of the past calendar year (assuming you receive dividends on a quarterly basis).
2. Calculate your total earnings in dividends for the year by adding up your quarterly payouts.
3. Enter in the rate at which your local jurisdiction taxes you for dividends. For instance in the UK, basic-rate taxpayers pay 7.5% on dividends, higher-rate taxpayers pay 32.5% on dividends, and additional-rate taxpayers pay 38.1% on dividends.
4. Press “Calculate” to see the final result.

How the dividend tax calculator works

The Invezz dividend tax calculator calculates what you’ll have to pay in taxes on the dividends you earned from owning shares of a company or companies. You’ll need to know the tax rate in the country or jurisdiction you live in to calculate the accurate amount that you owe.

Why should I use it?

While collecting dividends from an investment in a stock can be both exciting and enriching, you need to account for the taxes you’ll have to pay during your next filing period. Failure to do so could result in you not having the funds to cover what you owe. Using our dividend tax calculator on a more regular basis enables you to keep close tabs on what you owe, so you don’t get sticker shock at the end of the year over the size of your tax burden.

What is a dividend? 

A dividend is a sum of money paid regularly by a company to its shareholders out of its profits. In the case of publicly traded companies, those dividends are more often distributed on a quarterly basis. The frequency of dividend distribution can vary though, sometimes being given out semi-annually or once a year, depending on the company that pays the dividends.