Dividend Tax Calculator UK
Work Out Your Dividend Tax in Seconds
Use our free 2025/26 dividend tax calculator to see exactly how much you’ll owe — and how much you could save with the right salary/dividend split.
Up to date for the 2025/26 tax year
Works for England, Wales & Scotland
Fast, free & easy to use
How Dividend Tax Works in the UK
Dividends are payments made to shareholders (usually directors) from a company’s profits after Corporation Tax. If you’re a limited company director, dividends can be a tax-efficient way to pay yourself — but you still need to understand the rules.
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Here’s how dividend tax works in 2025/26:
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£500 tax-free Dividend Allowance
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Your Personal Allowance (£12,570) applies first (used by salary or other income)
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Then you pay:
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8.75% on dividends in the basic rate band
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33.75% on dividends in the higher rate band
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39.35% on dividends in the additional rate band
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Note: Salary is taxed differently and may trigger National Insurance. Dividends do not incur NI contributions.
If you're in Scotland, the tax bands differ for salary, but dividend tax rates are the same across the UK.
Example Scenarios
Example 1 – Basic Rate Taxpayer
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Salary: £12,570
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Dividends: £30,000
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Total Tax Due: £1,905
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Effective Tax Rate: ~6%
Example 2 – Higher Rate Taxpayer
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Salary: £20,000
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Dividends: £60,000
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Total Tax Due: £9,286
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Effective Tax Rate: ~12%
Example 3 – Additional Rate Taxpayer
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Salary: £30,000
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Dividends: £100,000
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Total Tax Due: £24,753
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Effective Tax Rate: ~18%
Want to Maximise Your Take-Home Pay?
Most business owners overpay tax without realising it.
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At Ultra Tax Ltd, we help clients across the UK legally reduce their tax bills through smarter salary and dividend planning.
Whether you're just starting out or earning six figures, the right structure could save you £1,000s per year.
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We’ll help you:
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Decide the best salary/dividend split
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Avoid common tax mistakes
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Stay compliant with HMRC
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Pay yourself more efficiently
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