Salary & Dividend Tax Calculator
See exactly what a UK company director keeps from any salary and dividend split, Income Tax, National Insurance and dividend tax, worked out on 2026/27 rates.
Your drawings
- Income Tax£0
- National Insurance£0
- Dividend Tax£4,821
- Total tax£4,821
Want the split that keeps the most, including Corporation Tax and the Employment Allowance?
Get a free remuneration reviewEstimate only, using 2026/27 rates for England, Wales & Northern Ireland. It shows personal tax on the amounts drawn and excludes Corporation Tax, the Employment Allowance, student loans and other income. It is not personal tax advice, talk to us for a calculation on your situation.
How the salary and dividend split works
Most UK company directors pay themselves with a mix of salary and dividends. Salary is a deductible cost for the company and builds your National Insurance record, but it attracts Income Tax and both employee and employer NIC. Dividends are paid from post-tax profit and carry no National Insurance, which is why a modest salary topped up with dividends is usually more efficient than a large salary alone.
New for 2026/27: dividend tax rates rose by two percentage points from 6 April 2026, the ordinary rate to 10.75% and the upper rate to 35.75% (the additional rate stays at 39.35%), announced at the Autumn 2025 Budget. This calculator uses the new rates.
The trade-off is Corporation Tax: dividends come out of profit that has already been taxed at 19%–25%. The genuinely optimal split weighs your personal tax (shown above) against the company's Corporation Tax, the most tax-efficient director's salary, and whether your company can claim the Employment Allowance. Our tax planningteam models the whole picture for owner-managed companies.
Frequently asked questions
How is the most tax-efficient salary and dividend split worked out?
For most owner-managed companies the classic approach is a modest salary, often around the personal allowance or the National Insurance secondary threshold, topped up with dividends, because dividends carry no National Insurance. The exact optimum depends on your company profits, the Employment Allowance, and whether you have other income. This tool shows the personal tax on any split; we model the optimum for your specific position in a review.
Does this include Corporation Tax?
No, this calculator shows your personal tax (Income Tax, National Insurance and dividend tax) on the money you draw. Dividends are paid from post-Corporation-Tax profits, so a full extraction plan also weighs the 19%–25% Corporation Tax on company profits. We bring both sides together in our tax planning service.
Which tax year and region does it use?
It uses 2026/27 rates and thresholds for England, Wales and Northern Ireland. Scotland has different Income Tax bands for non-dividend income, so Scottish taxpayers should treat the figures as indicative only.