Understand your take-home income
See your estimated personal tax, what remains after tax and how an extra dividend could affect your £100,000 Personal Allowance threshold.
For England, Wales and Northern Ireland · 2025/26 and 2026/27
Your estimate
- Total salary and dividends
- Personal Allowance available
- Income tax on salary
- Dividend tax
- Total personal income tax
- Employee NI estimate
What if you take the extra dividend?
- New total income
- Remaining Personal Allowance
- Additional personal income tax
- Extra income after tax
- Effective tax on the extra dividend
Includes any extra tax on existing income caused by losing Personal Allowance. This compares taking the extra dividend with not taking it in the selected year.
Enter your annual figures and select Calculate my estimate.
How dividends affect the £100,000 threshold
Salary and dividends both count towards adjusted net income. Above £100,000, your Personal Allowance reduces by £1 for every £2 of additional adjusted net income. It reaches zero at £125,140. The £500 dividend allowance does not reduce adjusted net income or free up a tax band.
That means the tax cost of an extra dividend can be greater than the headline dividend rate: it may also increase tax on income that was previously covered by your Personal Allowance.
Dividend tax rates
| Band | 2025/26 | 2026/27 |
|---|---|---|
| Basic | 8.75% | 10.75% |
| Higher | 33.75% | 35.75% |
| Additional | 39.35% | 39.35% |
Both years have a £500 dividend allowance and a standard £12,570 Personal Allowance, subject to income. Select a year above to calculate using that year’s rates.
What this estimate includes
This tool covers salary and dividends only, with Personal Allowance allocated to minimise income tax under the rules for the selected year. It assumes UK residence, no other income, no pension or Gift Aid adjustments, no other allowances or reliefs and no student-loan deductions.
Employee National Insurance is an annual estimate using category A rates for someone below State Pension age. Actual payroll deductions may differ with pay frequency, employment dates, directorship dates or NI category.
Results exclude corporation tax and employer National Insurance. They do not identify the most tax-efficient salary or show the total cost to your company. Dividends must be supported by distributable profits; cash in the bank alone does not establish that.
Turn an estimate into a practical plan
Salary, dividends, pension contributions and the timing of personal tax payments should be considered together. Our accountants in Haywards Heath can review your company and personal position before you make a decision.
Read a real example of accounts and dividend planning, or arrange a conversation about your own figures.
Discuss your tax planningLooking for salary after PAYE deductions? Use our 2026/27 net pay and take-home salary calculator to estimate income tax, National Insurance, workplace pension and student-loan deductions.