Salary + Dividend Take-Home Calculator
Common for limited company directors: combine a salary and dividends and see the net take-home. Dividends are taxed correctly on top of salary, using 2025/26 (England, Wales & Northern Ireland) rates.
Your income
Take-home pay
Net annual
£48,664
Net monthly
£4,055
Net weekly
£936
Gross total
£52,570
Tax breakdown
Income tax on salary
£0
NI on salary
£0
Tax on dividends
£3,906
Total tax & NI
£3,906
| Dividend band | Amount in band | Tax due |
|---|---|---|
| Dividend allowance (0%) | £500 | £0 |
| Basic rate (8.75%) | £37,700 | £3,299 |
| Higher rate (33.75%) | £1,800 | £608 |
Household benefits
2025/26 rates. Child Benefit and Marriage Allowance are based on whichever partner earns more, not household income combined.
Estimates only, based on published HMRC rates for 2025/26 (England, Wales & Northern Ireland). Assumes no other income, pension contributions or student loan. Does not cover Corporation Tax on the company's profits before dividends are declared. Net take-home figures above do not include Child Benefit or Marriage Allowance shown below. Not tax advice — consult an accountant for company tax planning.
How this works
Dividends are taxed as the "top slice" of your income — after your salary has used up your Personal Allowance and any basic/higher-rate band. A £500 dividend allowance applies at 0%, then dividends are taxed at 8.75% (basic rate), 33.75% (higher rate) or 39.35% (additional rate) depending which band they fall into.
Dividends are not subject to National Insurance, unlike salary.
Frequently asked questions
- Why do directors often take a small salary plus dividends?
- A salary around the NI/Personal Allowance threshold avoids employee NI while still qualifying for state pension credits, and dividends are taxed at lower rates than salary above that — but this doesn't account for Corporation Tax the company pays on its profits before dividends, or employer NI.
- Does this include Corporation Tax?
- No — this calculator only covers personal tax on money you've already received as salary and dividends. Corporation Tax is paid by the company on its profits before dividends are declared.
- What order are salary and dividends taxed in?
- Salary (and other non-dividend income) is taxed first, using up the Personal Allowance and lower bands; dividends are taxed on top.
- Does dividend income count towards the Child Benefit charge?
- Yes — the High Income Child Benefit Charge looks at total adjusted net income, which includes dividends alongside salary, not just employment income.
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