Salary & Dividend Tax Calculator UK 2025/26 & 2026/27

Estimate salary tax, employee National Insurance, employer National Insurance, dividend tax, company cost and take-home income. This calculator is designed for limited company directors, shareholders and contractors planning salary and dividends.

Enter Your Income

Most single-director companies with no other employees cannot claim Employment Allowance.
Salary and employer NIC are normally deductible for corporation tax. Dividends are not.

This calculator is for England, Wales and Northern Ireland. It does not include Scottish income tax rates, student loans, pension contributions, benefits in kind, marriage allowance, company car benefits, savings income or other personal circumstances.

Your Estimated Result

Total Gross Income £0
Estimated Take-Home Income £0
Total Personal Tax & NIC £0
Total Company Cost £0
Personal Allowance Available £0
Total Taxable Income £0
Taxable Salary £0
Income Tax on Salary £0
Employee NIC Paid by You £0
Employer NIC Before Employment Allowance £0
Employment Allowance Used £0
Employer NIC Paid by Company £0
Dividend Allowance Used £0
Taxable Dividends £0
Extra Tax to Pay on Dividends £0
Corporation Tax Relief on Salary & Employer NIC £0
Net Company Cost After Estimated CT Relief £0
Effective Personal Tax Rate 0%
Estimated Take-Home Income: £0

What this calculator includes

  • Income tax on salary
  • Employee National Insurance paid by you
  • Employer National Insurance paid by the company
  • Dividend tax payable personally
  • Employment Allowance option
  • Estimated corporation tax relief on salary and employer NIC

Important for company directors

The best salary and dividend mix depends on company profits, other income, payroll setup, Employment Allowance eligibility, pension planning and your overall tax position. A personalised review can help avoid overpaying tax.

Need help choosing the most tax-efficient salary and dividend mix?

BNW Accountants can help company directors, contractors and shareholders plan salary, dividends, payroll and company tax efficiently while staying compliant with HMRC.

Call 0208 648 0800 Email BNW Accountants

How salary and dividends are taxed

Company directors often take a combination of salary and dividends. Salary is usually deductible for corporation tax but may create PAYE and National Insurance liabilities. Dividends are paid from post-tax company profits and are taxed personally through Self Assessment.

What is the most tax-efficient salary for directors?

The most tax-efficient salary depends on your company, other income, Employment Allowance eligibility and pension planning. For many directors, a low salary with dividends can be efficient, but the right amount should be reviewed every tax year.

Dividend tax rates

For 2025/26, dividend tax rates are 8.75%, 33.75% and 39.35%. For 2026/27, dividend tax rates are 10.75%, 35.75% and 39.35%.

Employer National Insurance

From 2025/26, employer National Insurance may apply where salary exceeds the secondary threshold. Some companies may reduce this with Employment Allowance, but many single-director companies cannot claim it.

Need personalised advice?

This calculator gives an estimate only. BNW Accountants can review your salary, dividends, payroll, corporation tax and Self Assessment position to help you extract profits tax-efficiently and stay compliant with HMRC.

Call: 0208 648 0800 | Email: info@bnwaccountants.co.uk

Disclaimer

The calculators available on this website are provided for general informational and illustrative purposes only. Whilst every effort has been made to ensure the accuracy of the calculations and information provided, the results may contain errors, omissions or inaccuracies, including those arising from software limitations, changes in legislation, tax rates or HMRC practice.

The calculations generated should not be relied upon as financial, accounting, legal or tax advice and may not reflect your individual circumstances. Users should seek professional advice before making any financial or tax-related decisions.

BNW Accountants accepts no responsibility or liability for any loss, damage or consequences arising directly or indirectly from the use of, or reliance upon, these calculators or the information produced by them.

Use of these calculators is entirely at the user’s own risk.