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Rates & sources2026/27
2026/27 simple salary-and-dividends Income Tax estimate for England, Wales and Northern Ireland. It applies the £500 Dividend Allowance and Personal Allowance taper.
| Band / figure | Rate |
|---|---|
| Dividend Allowance | £500 |
| Ordinary rate | 10.75% |
| Upper rate | 35.75% |
| Additional rate | 39.35% |
Source: GOV.UK — Tax on dividends — source checked for 2026/27.
When to use this calculator
- Before accepting a pay change, bonus, pension contribution or salary-sacrifice option.
- When you want a simple take-home estimate before payroll or filing.
- When you are approaching the £100,000 income level and want to see the personal allowance taper.
- When you need to convert between hourly, monthly and annual pay.
Worked example: £30k salary plus £20k dividends
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Salary above PA | £17,430 |
| Dividends | £20,000 |
| Less dividend allowance | £500 |
| Taxable dividends | £19,500 |
| Basic-rate dividend band remaining (£50,270 − £30,000) | £20,270 |
| £19,500 × 10.75% | £2,096 |
| Total dividend tax | £2,096 |
This stays in the basic-rate dividend band. With the salary unchanged, dividend income above roughly £20,770 would start using the higher-rate band; that is not a recommendation to time or alter payouts.
How to read your results
Total Net Income
The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.
Salary Tax
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Dividend Tax
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Total Tax
Review this figure alongside your gross income so you can understand deductions before the tax year closes. It is a planning estimate, not a filed return.
Method & assumptionsAuthoritative sources
This calculator estimates 2026/27 UK Income Tax on a simple combination of employment salary and dividends. It applies available Personal Allowance to salary first, tapers that allowance above £100,000 of total income, then stacks taxable dividends into the remaining Income Tax bands. The £500 Dividend Allowance is applied as a 0% dividend band.
It is for England, Wales and Northern Ireland only. It deliberately excludes National Insurance, Corporation Tax, pension and Gift Aid band extensions, savings income, benefits, share schemes, payments on account and a complete Self Assessment calculation. Scottish non-dividend income bands can change the result. Dividends inside an ISA or pension are outside this calculation; verify important decisions with HMRC or a qualified adviser.
Common mistakes
- !Entering gross income when you really want take-home pay, or vice versa.
- !Ignoring pension contributions, deductions or local tax rules that change the result.
- !Comparing monthly and annual figures without standardising them first.
- !Overlooking National Insurance or student-loan plan differences that apply to you.
What to do next
- Check the same scenario with related pay or deduction calculators.
- Keep a copy of the assumptions so you can compare the next tax year or pay period.
- If you are self-employed, compare this result with the self-employment tax calculator.
- Check whether a small pension contribution change moves take-home pay more than you expect.
Go deeper — 2 guides reference this calculator
UK Dividend Tax 2026/27: Rates, £500 Allowance & Director Strategy
UK dividend tax guide — 10.75%/35.75%/39.35% rates for 2026/27, the £500 allowance, and how directors should mix salary and dividends after CT changes.
UK Corporation Tax: 19%, 25% and the 26.5% Marginal Band Explained
How the post-April-2023 UK Corporation Tax structure works — Small Profits Rate, main rate, marginal relief, associated-company rules, filing deadlines and deductible costs.
Frequently asked
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