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Business calculator · 2025/26
Dividend Tax Calculator 2025/26
Free UK dividend tax calculator. See exactly what tax you'll pay on dividends from your limited company in 2025/26.
How this is calculated
The maths, in plain English.
Dividend tax in the UK works like this for 2025/26:
- Dividend allowance — first £500 is tax-free
- Basic rate dividends (8.75%) — dividends in the basic-rate band
- Higher rate dividends (33.75%) — dividends in the higher-rate band
- Additional rate dividends (39.35%) — dividends above £125,140 of total income
Dividends "stack" on top of your other income. So if your salary uses your personal allowance and basic-rate band, dividends start being taxed at the higher rate immediately.
This calculator assumes a standard salary + dividends setup for an owner-managed Ltd in England/Wales/NI. For Scottish taxpayers, only the dividend tax rates above apply (income tax bands differ for the salary portion).
4 questions we get asked.
If yours is not here, ring us. We answer in four rings on weekdays and write back the same day on emails.
01 What's the most tax-efficient salary for a Ltd director?
Usually £12,570 (the personal allowance) — keeps you below the income tax threshold and the secondary NI threshold for employer NI in 2025/26. Some opt for £6,396 (the lower earnings limit) to qualify for state pension credit without triggering any NI. We'll model both for you.
02 What is the dividend allowance?
It's the amount of dividends you can receive tax-free each tax year, on top of your personal allowance. £500 in 2025/26 (the same as 2024/25, down from £1,000 in 2023/24, and £2,000 the year before). Married couples can each use their own allowance.
03 When do I pay dividend tax?
Dividends taken in the 2025/26 tax year (6 April 2025 – 5 April 2026) are reported on your Self-Assessment, due 31 January 2027. The tax is paid then, alongside any other Self-Assessment liabilities.
04 Should I take dividends or salary?
For most owner-managed companies, a small salary plus dividends is more tax-efficient than salary alone — because dividends don't trigger NI. The optimal mix depends on your other income, pension goals, and future plans. We model it for every Ltd client annually.
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