Salary + Dividend Tax Calculator

Estimate income tax on salary and dividends, Class 1 employee NI, and student loans for 2025/26 (England, Wales & Northern Ireland income tax on salary). For illustration only.

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Undergraduate student loan

Your estimate

Enter at least a salary or dividend amount to see an estimate.

Reference (2025/26)

Class 1 employee NI (salary)

8% between £12,570 and £50,270, 2% above (on relevant earnings after pension).

Dividend allowance

£500 of taxable dividends at 0% in this model (confirm on gov.uk).

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Frequently asked questions

How are salary and dividends taxed together?

Your personal allowance is applied to your salary (after pension) first, then to dividends. Income tax on salary uses the usual 20%, 40%, and 45% rates on taxable income. Dividends are taxed separately with the dividend allowance and dividend tax rates (8.75%, 33.75%, 39.35%) and sit on top of your taxable salary in the income band stack. Class 1 employee National Insurance applies to salary (after pension) only, not dividends.

Do student loan repayments include dividends?

Income-based student loan repayments for Self Assessment are generally calculated on a basis that includes your income from dividends. This calculator uses your combined salary (after pension) plus dividends for the annual estimate.

Is this suitable for company directors?

It is a simplified model for directors who take a salary and dividends. It does not replace payroll, does not include benefits in kind, multiple jobs, or company-level calculations.

Does this include corporation tax?

No. It estimates personal income tax, National Insurance, and student loans. Corporation tax on company profits is separate.

Official HMRC guidance

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Important disclaimer

This calculator is for illustration and general information only. It does not constitute tax, legal, financial, or professional advice. It estimates income tax on salary (England, Wales & Northern Ireland bands), Class 1 employee National Insurance, dividend tax (including the £500 dividend allowance in this model), and student loan repayments using simplified annual assumptions. It does not model PAYE coding, Scottish income tax on salary, benefits in kind, multiple jobs, or company taxes. Figures may not match HMRC, HMRC software, or your payslip. Always consult a qualified accountant or tax professional and verify current rates on gov.uk before making decisions. We accept no liability for reliance on this tool.

Personal allowance taper applies from £100,000 adjusted net income (typically to zero by around £125,140 with a full £12,570 allowance). Income tax bands: first £37,700 of taxable income at basic rate, then higher rate up to £112,570, then additional rate.