Dividend Tax Calculator UK

Last updated: October 2026

For a UK limited company director in 2026/27, enter turnover, expenses and salary. The calculator charges corporation tax at 19 to 25 percent with marginal relief, taxes salary through the income tax bands, then applies dividend tax at 10.75, 35.75 or 39.35 percent above the £500 allowance.

What does the dividend tax calculator do?

This free calculator works out the full 2026/27 tax picture for UK limited-company directors: corporation tax on company profit, income tax on your salary, and dividend tax on what you take out. Enter turnover, expenses and salary to see every charge and your true take-home pay.

How to use it

1. Enter your company’s annual turnover, your allowable business expenses, and the director salary you take through payroll.
2. Press “Calculate dividend tax” to see corporation tax on the company profit, income tax on the salary, and dividend tax on the rest, each broken down by band.
3. Read the total tax bill and your take-home pay (salary plus dividends after all tax), then use “Copy result” to save the figures.

The 2026/27 rates used

All figures verified against official sources in October 2026. Corporation tax (financial year to 31 March 2027): 19% small profits rate on profits up to £50,000, 25% main rate above £250,000, with marginal relief at 3/200 between the limits (gov.uk corporation tax rates). Dividend tax: £500 allowance at 0%, then 10.75% basic rate, 35.75% higher rate, 39.35% additional rate. The basic and higher rates rose by 2 percentage points on 6 April 2026 (Autumn Budget 2025); the allowance and additional rate are unchanged. Income tax on salary: £12,570 personal allowance, 20% to £50,270, 40% to £125,140, 45% above. Dividends are taxed as the top slice of income: your salary uses the bands first, dividends stack on top.

Worked example

A director with £80,000 turnover, £5,000 expenses and a £12,570 salary: company profit is £62,430. Corporation tax is 25% of £62,430 (£15,607.50) less marginal relief of (£250,000 – £62,430) x 3/200 = £2,813.55, giving £12,793.95. Dividends available: £49,636.05. The salary uses the personal allowance, so no income tax on it. Dividend tax: £500 at 0%, £37,200 at 10.75% = £3,999, £11,936.05 at 35.75% = £4,267.14. Total tax £21,060.09, take-home £53,939.91.

What is not included

The calculator assumes a single company with no associated companies, all post-tax profit distributed as dividends, and employer NICs on the salary are not modelled. It does not cover IR35/off-payroll determinations, the £1,000 trading allowance, pension relief, student loan repayments, or Scottish taxpayer status. It is an estimate, not tax advice.

Wrong tool? Find the right one

Trading as a sole trader rather than through a company, use the UK self-employed tax calculator (income tax plus Class 2/4 National Insurance). After a plain income tax figure, use the UK income tax calculator.

Frequently asked questions

Why did dividend tax rates rise in 2026/27?

The Autumn Budget 2025 raised the basic and higher dividend rates by 2 percentage points from 6 April 2026, to 10.75% and 35.75%, on the basis that dividends do not carry National Insurance. The £500 allowance and the 39.35% additional rate are unchanged.

How are dividends taxed if I also take a salary?

HMRC stacks your income: salary first, then dividends on top as the top slice. Your salary uses the personal allowance and basic-rate band first, so dividends often land in a higher band than the dividend amount alone would suggest.

What is the most tax-efficient director salary?

Many directors take £12,570 to use the personal allowance with no income tax or employee NICs. The exact optimum depends on the Employment Allowance and your circumstances, so treat this as a starting point and check with an accountant.

What is marginal relief on corporation tax?

Companies with profits between £50,000 and £250,000 pay 25% less marginal relief of (£250,000 minus profit) x 3/200. It unwinds the 19% small profits rate gradually, so each extra pound of profit in that band faces an effective marginal rate of about 26.5%.

Do I pay National Insurance on dividends?

No. Dividends are not subject to National Insurance, which is one reason directors prefer them to salary. You do pay employee and employer NICs on salary taken through payroll; employer NICs are not modelled in this calculator.

References

Official rates: Tax on dividends (gov.uk), Corporation tax rates and allowances (gov.uk), Income tax rates and Personal Allowances (gov.uk), verified October 2026.

Related calculators: UK self-employed tax calculator, UK income tax calculator, VAT calculator.