Salary & Dividend Tax Calculator 2026/27
Run a limited company? Model the classic small-salary-plus-dividends mix and see your total personal tax and what you keep.
How dividends are taxed in 2026/27
Above the £500 dividend allowance, dividends are taxed at 10.75% in the basic band, 35.75% in the higher band and 39.35% in the additional band — the 2026/27 rates. Your salary uses your personal allowance first, and dividends stack on top.
The most efficient mix depends on your company profits, other income and pension plans. Our contractor accountants model it properly before you take a penny.
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Frequently asked questions
For many single-director companies a salary around the u00a312,570 personal allowance with the balance as dividends works well, but employer NI above u00a35,000 and the Employment Allowance change the maths u2014 the calculator shows your combined position.
After the u00a3500 dividend allowance, dividends are taxed at 10.75% basic, 35.75% higher and 39.35% additional rate.
Not always u2014 salary earns state pension credits and reduces corporation tax, while dividends require distributable profits. Most directors use a blend; book a free consultation for a personalised plan.