Dividend Tax Calculator
Dividend Tax Calculator: Estimate Your Income Tax
Easily calculate the income tax owed on your dividends based on your salary and yearly dividend payments. Use this simple tool to get an instant breakdown of your tax obligations.
Many contractors operating through a limited company adopt a “low salary, high dividends” approach. This method involves paying yourself a salary within the personal allowance and below the National Insurance contribution threshold, with the rest distributed as dividends.
This approach is often the most tax-efficient, as it helps minimize both income tax and NICs. However, it’s worth noting that since April 2016, the government has increased tax rates on dividend income.
Your tax
| 2025 - 2026 | Year | Month | Week |
|---|---|---|---|
| Salary Income | £0.00 | £0.00 | £0.00 |
| Dividend Income | £0.00 | £0.00 | £0.00 |
| Savings Income | £0.00 | £0.00 | £0.00 |
| Personal Allowance | £12,570.00 | - | - |
| Dividend Allowance | £500.00 | - | - |
| Salary Non Taxable | £NaN | £0.00 | £0.00 |
| Salary Basic Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Salary Higher Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Salary Additional Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Salary Tax Due | £NaN | £0.00 | £0.00 |
| Savings Non Taxable | £NaN | £0.00 | £0.00 |
| Savings Basic Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Savings Higher Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Savings Additional Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Savings Tax Due | £NaN | £0.00 | £0.00 |
| Dividends Non Taxable | £NaN | £0.00 | £0.00 |
| Dividends Basic Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Dividends Higher Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Dividends Additional Rate (NaN%) | £NaN | £0.00 | £0.00 |
| Dividend Tax Due | £NaN | £0.00 | £0.00 |
| Total Taxable | £0.00 | £0.00 | £0.00 |
| Total Tax | £0.00 | £0.00 | £0.00 |