LimitedCompanyTaxCalculator
Updated for 2026/27

Dividend tax calculator 2026/27

Set company profit and dividends to see the dividend tax calculation: the £500 allowance, then 10.75%, 35.75% or 39.35% depending on your total personal income for 2026/27.

Updated for 2026/27. Uses UK corporation tax, dividend tax and PAYE assumptions. Estimates only — not tax advice.

Calculate company tax Read the guides
£500 dividend allowance10.75% basic rateSalary interactionEffective rate
2026/27 tax year Company profit to personal take-home Salary plus dividends Retained cash shown

Limited company tax calculator

Company tax estimate

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you want to enter company income?
£

Enter profit before director salary, pension contributions and corporation tax.

£

Annual profit used in calculations = monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£

Amount you plan to withdraw from available post-tax company profit.

Selected dividends exceed available post-tax company profit.
£
£
£47,874 personal take-home / year £3,989/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,989
Total tax
£18,325
Effective rate
24.4%
Personal take-home£47,874
Dividend tax£4,696
Employer NI£1,136
Corporation tax£12,493
Company pension£0
Retained company cash£8,801
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£12,493.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,696.25
Retained company cash£8,801.46
Personal take-home£47,873.75
Effective tax rate24.43%
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Quick answer

Calculate dividend tax 2026/27: £500 allowance, then 10.75% basic rate, 35.75% higher rate, 39.35% additional rate. Shows how salary and dividends interact.

Updated for 2026/27. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance · Editorial standards · Methodology. Estimates for planning only — not tax, accounting or financial advice.

Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.

About this calculator

Dividend tax calculator 2026/27: what it covers

This calculator works out the personal dividend tax on money you take out of your limited company as dividends. Dividends are paid from profit that has already been through corporation tax, so they carry no National Insurance for you or the company. The first £500 of dividends each year is covered by the dividend allowance and is taxed at 0%.

Above the allowance, dividends are taxed at 10.75% while they fall in the basic-rate band, 35.75% in the higher-rate band, and 39.35% in the additional-rate band. Crucially, dividends stack on top of your salary and other income: your salary uses up part of your Personal Allowance and basic-rate band first, so the band a dividend lands in depends on your total income for the year.

Because dividends come out of post-corporation-tax profit, the true cost is the combination of corporation tax on the company profit and the dividend tax you then pay personally. That combined rate is why dividend planning is usually done alongside your salary rather than in isolation.

Common questions

Dividend tax calculator 2026/27 — FAQs

How much dividend can I take before paying any tax?
The dividend allowance covers the first £500 of dividends at 0% for everyone, regardless of your other income. On top of that, if your salary and other income are below the £12,570 Personal Allowance, some dividends can also be sheltered by the unused allowance. In practice a typical director on a £12,570 salary uses the full Personal Allowance on salary, so dividends beyond the £500 allowance are taxable.
What are the dividend tax rates for 2026/27?
After the £500 allowance, dividends are taxed at 10.75% within the basic-rate band (up to £50,270 of total income), 35.75% in the higher-rate band (£50,270 to £125,140), and 39.35% above £125,140. The rate applied depends on where the dividend falls once stacked on top of your salary.
Do I pay National Insurance on dividends?
No. Dividends are not earnings, so neither you nor the company pays National Insurance on them. This is one reason directors often take a modest salary plus dividends, though the company must first pay corporation tax on the profit before it can be distributed.
How do I report and pay dividend tax?
You report dividends from your own company through a Self Assessment tax return, entering the total received in the tax year. HMRC then calculates the dividend tax due based on the band your dividends fall into. Payment is normally due by 31 January following the end of the tax year.
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Getting set up

Business bank accounts

A limited company must keep its finances separate from personal accounts. These accounts are free to open.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - deposits up to £85,000 are FSCS protected. Accepts limited companies and sole traders. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier (Tide Plus is £9.99/month). Funds are safeguarded as e-money, not FSCS protected. Usually has a new-account offer.
Open an account →
Mettle by NatWest
Free. Single-director limited companies only (max two owners, one account user). Includes FreeAgent bookkeeping at no extra cost. Funds are safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →
Registering at Companies House

Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day digital registration is £156. You can register directly at gov.uk or through a formation agent.