Tax on investment income.
A worked example
Starting figures
- Dividend income
- $9,000
- Dividend tax rate
- 15%
- Tax-free allowance
- $0
What it returns
- Tax due
- $1,350
- Net income
- $7,650
- Taxable dividends
- $9,000
- Effective rate
- 15.00%
How to read the results
With the defaults above, tax due works out at $1,350.