Tax Tool
2026 Dividend Tax Modeller: Accurate Extraction Planning
With the tax-free dividend allowance experiencing drastic cuts historically and into 2026, the traditional strategy of a low salary combined with maxed-out dividends is no longer straightforward.
Every extraction must be mathematically modeled. Calculate precisely how much tax you will pay on your dividend extractions across the Basic (10.75%), Higher (35.75%), and Additional (39.35%) rate bands to prevent bracket bleed.
- Account for personal allowance thresholds.
- Safely isolate 2026 allowance drops.
£
£20k
£300k+
What you actually keep
£66,240
2026/27 Rates Applied
Assumed Director Salary
£12,570
Net Dividend Extraction (After Tax)
£48,775.50
Corporation Tax
£13,760
Personal Dividend Tax Liability
£4,894.50
Breakdown requested.
For estimation only. Assumes a £12,570 director salary, no associated companies, and no Employment Allowance.