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Salary vs dividends calculator 2026/27

If you’re the only director of your limited company, see how much you keep with different salaries, with the rest of the profit paid as dividends. Every tax is included: Corporation Tax, both kinds of National Insurance, income tax and dividend tax. Nothing you type leaves your device.

Based on GOV.UK rates for 2026/27, last checked 29 October 2026 · An estimate, not tax advice

Company profit before your salary Sales minus business costs for a 12-month year, before paying yourself

£

Your other income Optional: a job, pension or rental profit in 2026/27

£

Try another salary too Optional

£

Compare

The 2026/27 numbers behind it

• Dividends: the first £500 is tax-free, then 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% above £125,140. The basic and higher rates went up by 2 percentage points from 6 April 2026.
• Salary: employee National Insurance is 8% above £12,570. Employer National Insurance is 15% above £5,000. A salary of £6,708 or more gives you a qualifying year for your State Pension.
• Corporation Tax: 19% on profits up to £50,000, 25% over £250,000, with marginal relief in between. Salary and employer National Insurance reduce the profit it’s charged on.
• Employment Allowance: a company whose only employee is a director can’t claim it, so the calculator leaves it out. If you have other staff, a higher salary may work out better.

Living in Scotland? Your salary is taxed at Scottish rates but dividends use the UK rates, so the results will be slightly different.

Read more: how to pay dividends properly. Sources: Tax on dividends, Rates and thresholds for employers 2026 to 2027 and Corporation Tax rates on GOV.UK.