Dividend tax calculator
Work out the tax on your dividends in 2025/26 — on top of your salary or other income — after the £500 dividend allowance. England.
Your estimate
Tax on your dividends
£0
- Taxed at 8.75%
- £0
- Taxed at 33.75%
- £0
- Taxed at 39.35%
- £0
- Dividends after tax
- £0
Assumes England rates and the standard personal allowance. The most efficient salary/dividend mix depends on your wider position — that’s exactly what we plan for directors.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- Dividends
- Money you take out of your company as a shareholder, from its profits after Corporation Tax.
- Dividend allowance
- The first £500 of dividends each year is tax-free.
- Personal allowance
- The first £12,570 of income you can earn tax-free each year.
- Dividend tax rates
- Dividends are taxed at 8.75%, 33.75% or 39.35%, depending on your overall income.
FAQ
Dividend tax calculator — your questions answered
How much tax do I pay on dividends?
After a £500 tax-free dividend allowance, dividends are taxed at 8.75% if they fall in the basic-rate band, 33.75% in the higher-rate band, and 39.35% in the additional-rate band — based on your total income. Enter your figures above to see your bill.
How are dividends taxed on top of a salary?
Your salary uses up your tax bands first; dividends then “stack” on top and are taxed at the dividend rate for whichever band they fall into. That’s why your salary level affects the dividend tax — our calculator positions them correctly.
Is there a tax-free dividend allowance?
Yes — the first £500 of dividends each tax year is tax-free, on top of any unused personal allowance. It has fallen sharply in recent years, so planning matters more than it used to.
Should I take salary or dividends from my company?
For most directors a small salary plus dividends is the most tax-efficient mix, because dividends carry no National Insurance and are taxed at lower rates. The right balance depends on your profit and other income — we model it for each client.
When do I pay tax on my dividends?
Through Self Assessment, by 31 January after the end of the tax year. If your bill tops £1,000 you may also need to make payments on account towards the following year.
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