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Although previous studies examined the effects of immigration on support for redistribution, few have considered the cultural diversity within the immigrant population or explored how the anti-solidarity and competition mechanisms may interact. This paper aims to fill this gap by examining redistribution preferences in the context of multiple out-groups and competition for scarce resources. I argue that cultural diversity matters because individuals are less willing to empathize with and help the poor or those negatively affected by competition as the latter become more culturally dissimilar. Combining evidence from the European Social Survey and a laboratory experiment, I demonstrate that rich voters are less likely to support redistribution when the recipients of redistribution or those affected by competition are more culturally dissimilar whereas poor voters remain strong supporters of redistribution regardless. By combining insights from political economy and social psychology, this paper advances our understanding of the effects of immigration on the politics of redistribution.