Salary & dividend take-home calculator
Enter your company's expected profit and your planned salary, and see roughly what lands in your pocket after corporation tax, income tax, National Insurance and dividend tax.
Your estimate
This calculator assumes all post-tax company profit is drawn as dividends, in addition to your chosen salary, for a single director with no other income.
- Uses 2026/27 rates and thresholds
- Assumes all post-tax profit is drawn as dividends
- A guide, not advice: your real position depends on your full circumstances
Salary & dividend estimate
Change the numbers, the results update instantly.
Simplified estimate for a single director with no other income, using 2026/27 rates. Ignores Employment Allowance, student loans, pensions and benefits in kind. Always take advice before acting.
How it works
Your company pays corporation tax on the profit left after salary, at 19% up to £50,000, 25% above £250,000, and a marginal rate in between. What remains can be paid out as dividends. Your salary uses up your personal allowance and tax bands first, then dividends stack on top and are taxed at dividend rates, which are lower than income tax rates and carry no National Insurance.
The personal allowance tapers away above £100,000 of total income, which is why very high combined salary and dividend income can push your effective rate up sharply. This tool recalculates that taper automatically. Choosing the right salary and dividend split is one of the first things we review for clients using our limited company accounts service, and it's covered in detail in our tax-efficient salary guide.
Frequently asked questions
How is the salary and dividend split taxed?
Your company pays corporation tax on its profit first. What's left can be drawn as dividends, which are taxed separately from salary at lower rates, but only after your salary and any other income have used up your personal allowance and tax bands.
Why is a small salary usually more tax-efficient than a large one?
Salary attracts employee and employer National Insurance as well as income tax, while dividends do not attract National Insurance at all. Many directors take a salary around the personal allowance and the rest as dividends to reduce the combined tax and NI bill.
Does this calculator account for other income?
No, this tool assumes a single director with no other income. If you have other income, such as a second job, rental income or investment income, your effective rate will differ because it changes which tax bands your dividends fall into.
Is this figure exactly what I'll take home?
No. This is a simplified illustration using 2026/27 rates. It ignores Employment Allowance, student loans, pensions and benefits in kind. Book a free consultation for a figure based on your actual circumstances.
Related tools
Dividend Tax Calculator
Work out dividend tax due on top of your other income, band by band.
LiveTake-Home Pay Calculator
Full band walk on a straight salary, including student loan and pension.
LiveCorporation Tax Calculator
Estimate your company's corporation tax bill, including marginal relief.
These results are a simplified illustration based on 2026/27 rates, not advice. Your real position depends on your full circumstances. For a personalised answer, book a free consultation.
Numbers looking complicated?
A calculator gives you an estimate. A free call gives you a plan. Book one and we'll work through your actual situation.