Calculator · Limited co. directors
Dividend tax calculator
Estimate the tax due on dividends from your UK limited company — including the £500 dividend allowance and your personal allowance.
Tax year 2025/26
Calculator answer
Enter your figures to estimate the result for the 2025/26 tax year. The output is a planning estimate only and should be checked against HMRC guidance before filing or paying tax.
Dividend tax due
£4,031.25
- Dividend allowance used
- £500.00
- Taxed at 8.75% (basic)
- £37,200.00
- Taxed at 33.75% (higher)
- £2,300.00
- Taxed at 39.35% (additional)
- £0.00
- Dividends net of tax
- £35,968.75
How this calculator works
Dividends sit on top of your other income. Your personal allowance (£12,570) is used by salary and other income first, then any unused allowance covers dividends. After that, the first £500 of dividends is tax-free.
Whatever's left is taxed in three bands — 8.75% in the basic rate, 33.75% in the higher rate, 39.35% in the additional rate — based on the band your total income falls into.
The personal allowance is reduced by £1 for every £2 of income above £100,000, and disappears entirely at £125,140.