Dividend tax calculator for company directors
Enter your salary and the dividends you plan to take. You'll see the tax at the 2026/27 rates and how much you can take tax-free.
Your result appears here as you type.
An estimate from the figures you entered. It is not financial advice.
Dividend tax rates for 2026/27
| Band | Taxable income | Dividend rate |
|---|---|---|
| Dividend allowance | First £500 of dividends | 0% |
| Basic rate | Up to £50,270 | 10.75% |
| Higher rate | £50,271 to £125,140 | 35.75% |
| Additional rate | Over £125,140 | 39.35% |
The £500 is a 0% rate rather than extra tax-free income, so those dividends still use up space in your band.
How this is calculated
Your salary and other income go first. They use your personal allowance and then the bands from the bottom up. Dividends sit on top. Any unused allowance covers dividends at 0%, the next £500 is taxed at 0%, and the rest is taxed at the dividend rate for whichever band it lands in. If your total income is over £100,000 the allowance tapers as normal.
Worked example: £12,570 salary and £40,000 dividends
- The salary uses the whole personal allowance.
- First £500 of dividends: 0%
- Next £37,200 (to the top of the basic rate band): 10.75% = £3,999
- The last £2,300 falls in the higher rate band: 35.75% = £822.25
Dividend tax: £4,821.25. Keeping dividends to £37,700 would mean £3,999 in tax, all in the basic rate band.
Questions people ask
What are the dividend tax rates for 2026/27?
10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. The basic and higher rates went up by 2 percentage points from 6 April 2026. The first £500 of dividends is tax-free.
How much dividend can I take tax-free as a director?
Any of your £12,570 personal allowance that your salary hasn’t used, plus the £500 dividend allowance. With a salary of £12,570 that leaves £500 tax-free. With a salary of £5,000 it would be £8,070.
Do Scottish directors pay different dividend tax?
No. Dividends are taxed at the UK dividend rates and bands wherever you live. A Scottish salary uses the Scottish bands for the salary itself, which can change how much of the UK basic rate band is left.
Is corporation tax included?
No. Dividends are paid out of profit after corporation tax, which is 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between. This calculator only covers your personal tax on the dividend.
When is dividend tax paid?
Through Self Assessment. Tax on dividends paid in 2026/27 is due by 31 January 2028, and may trigger payments on account for the following year.
Sources
- Tax on dividends (GOV.UK)
- Income Tax rates and Personal Allowances (GOV.UK)
- Corporation Tax rates and reliefs (GOV.UK)
Rates and review
Uses rates for the 2026/27 tax year. Figures last checked against the sources on 25 October 2026.
Written by author to be named. Reviewed by qualified reviewer to be named.
See how we calculate and the disclaimer. Spotted a wrong figure? Report a problem.