Free tool · 2026/27 tax year

Dividend tax calculator

Work out the tax on your dividends and the best salary and dividend split for your limited company. See what you keep, what goes in your pension and what stays in the company, using the 2026/27 rates.

Your numbers

Company profit before your pay

Profit before director salary and employer National Insurance.

Director salary

Other taxable income

Rental profit, pension, self-employed profit or a second job. Taxed at income tax rates, with no NIC added.

Savings interest

Bank and building society interest received in the year.

Company pension contribution

Paid by the company into your pension. It reduces company profit before corporation tax and has no NIC or income tax.

Personal pension contribution (gross)

The full amount going in. You pay 80% from your bank and the provider claims the other 20%. Higher-rate relief comes through a wider tax band.

Share of after-tax profit you pay out: 100%

The rest is retained in the company. It has already borne corporation tax, and dividend tax is only due when you take it out later.

Employment Allowance available (£10,500)
Not available if you are the only paid employee and a director.

You take home

£0

Total tax and NIC

£0

Retained in the company

£0

After corporation tax, not yet taxed on you

Paid into your pension

£0

Where the profit goes

Take-home by salary

Every salary from £0 up, same profit and dividend share. The lime dot is your salary, the navy dot is the best result.

Compare common salaries

Same profit, same dividend share.

What this assumes

Rates for 6 April 2026 to 5 April 2027. Dividend tax 10.75%, 35.75% and 39.35% with a £500 allowance. Corporation tax 19% to £50,000, 25% above £250,000, with marginal relief between.
Employer NIC 15% above £5,000. Employee NIC 8% from £12,570 to £50,270 and 2% above. Employer NIC is deductible against corporation tax.
Other income is taxed as non-savings income with no NIC. Savings interest uses the 20%, 40% and 45% rates, the £5,000 starting rate for savings (reduced by non-savings taxable income) and the personal savings allowance of £1,000 (£500 for higher rate, nil for additional rate).
Retained profit is shown after corporation tax only. Taking it out in a later year will add dividend tax then, at that year's rates and your income at the time.
Income is stacked in order: salary and other income, then savings, then dividends. The personal allowance tapers above £100,000 of total income.
Company pension contributions are an allowable expense, taxed on you only when you draw the pension. They are not subject to NIC.
Personal contributions are relief at source. Tax relief is limited to your salary (or £3,600 if higher), and the basic and higher rate bands widen by the gross amount. They also lower the income used for the personal allowance taper.
Company and personal contributions together should stay within the £60,000 annual allowance. Carry forward, the tapered allowance for very high earners and salary sacrifice are not modelled.
No gift aid, director's loan or student loan.
Salary income tax uses England, Wales and Northern Ireland bands. Scottish taxpayers pay the same dividend rates but different rates on salary.
A salary above the lower earnings limit keeps the State Pension year without paying employee NIC. This tool does not value that.

What is the dividend allowance?

The dividend allowance is £500 for 2026/27. The first £500 of dividends you receive in the tax year is taxed at 0%, whatever your income. It was £1,000 in 2023/24 and has been £500 since 2024/25. The same allowance applies if you live in Scotland.

Dividends above the allowance are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. The basic and higher rates went up by 2 percentage points from 6 April 2026. Any dividends that fall inside your unused £12,570 personal allowance are also tax-free. The calculator above applies both automatically.

Dividend tax questions

What are the dividend tax rates for 2026/27?

Dividends above your £500 allowance are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, which applies to income over £125,140.

How much dividend can I take before paying tax?

If dividends are your only income, you can take up to £13,070 tax-free: the £12,570 personal allowance plus the £500 dividend allowance. If you also pay yourself a salary that uses your personal allowance, only the first £500 of dividends is tax-free. Dividends can only be paid from profits left after Corporation Tax.

What is the best salary and dividend split for a director?

It depends on your profit, other income, pension contributions and whether you claim Employment Allowance. The calculator shows your take-home pay at each salary level, so you can see where the balance of salary, dividends, pension and profit left in the company works best for you.

Do Scottish taxpayers pay different dividend tax?

No. Dividends are taxed at the same rates across the UK, including Scotland. Scottish income tax bands apply to salary and other non-dividend income, and this calculator uses the England, Wales and Northern Ireland bands for those.

Is this calculator tax advice?

No. It is an illustration based on 2026/27 rates and the assumptions shown with the results. If you want your actual numbers checked, Duna can do that for you.

Why £12,570 salary?

It uses your tax-free personal allowance, counts towards your State Pension, and the salary plus employer's NI reduces Corporation Tax. For most single-director companies it still beats a lower salary in 2026/27.

Why stop at £50,270?

Dividends up to that point are taxed at 10.75%. Above it, the rate jumps to 35.75%. Leaving profit in the company, or paying into a pension, can be cheaper than taking it all now.

Want your actual numbers checked?

Salary vs dividend planning is included in every Duna limited company plan. We'll set it up properly and run payroll and dividend paperwork for you. This calculator is an illustration based on 2026/27 rates and is not personal tax advice.

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