Dividend Tax Calculator

Calculate tax on your dividend income for the 2025/26 tax year.

£
£

Common scenarios:

Results

Total Income£62,570.00
Salary Tax + NI-£0.00
Dividend Tax-£7,281.25
Net Income£55,288.75
Monthly£4,607.40

Detailed Breakdown

Salary

Gross Salary£12,570.00
Income Tax-£0.00
National Insurance-£0.00

Dividends

Gross Dividends£50,000.00
Allowance Used-£500.00
Dividend Tax-£7,281.25

Updated for 2025/2026

UK tax year

Based on HMRC rates

Official tax bands

Estimates only

Not financial advice

About the Dividend Tax Calculator

Our dividend tax calculator helps company directors and shareholders understand their tax liability on dividend income. It calculates the combined tax on both salary and dividends, providing a clear picture of your total income and take-home pay after all deductions.

The calculator is particularly useful for limited company directors who take a combination of salary and dividends. It accounts for the tax-free dividend allowance, applies the correct dividend tax rates based on your total income, and calculates National Insurance on the salary portion only.

Remember that dividends can only be paid from company profits after corporation tax has been paid. The total tax efficiency of salary vs dividends depends on various factors including corporation tax rates, your personal tax position, and pension contributions. We recommend consulting with an accountant for personalised advice.

Frequently Asked Questions