How much tax on a £9,100 salary and £40,000 of dividends in 2025/26?

A £9,100 salary plus £40,000 of dividends gives £3,152.63 of dividend tax (the salary is within the personal allowance, so no income tax on it) — £3,152.63 in total for 2025/26. The salary fills the personal allowance and lower bands, then the dividends are taxed at the dividend rates above the £500 allowance. National Insurance is not charged on dividends.

Why do directors take a small salary plus dividends?

A salary up to the personal allowance (or the National Insurance thresholds) keeps income-tax and NI low, while dividends carry no National Insurance and are taxed at the lower dividend rates (8.75%/33.75%/39.35%). The company pays the dividends from post-corporation-tax profit, so the combination is usually more efficient than an all-salary package — though the right mix depends on profit, pension plans and other income.

What is the dividend allowance and how does it apply here?

The 2025/26 dividend allowance is £500: the first £500 of dividends above your personal allowance is taxed at 0%. In this scenario the £9,100 salary uses your allowance and lower bands first, so the £500 dividend allowance applies to the first £500 of your £40,000 dividends, and £36,030 of dividends is taxable.

Do I pay National Insurance on the dividends?

No — National Insurance applies only to the salary, not to dividends. On a £9,100 salary, employee NI depends on whether it exceeds the £12,570 primary threshold; the dividends themselves attract no NI, only dividend tax.

Is this the same in Scotland?

For the dividends, yes: dividend tax rates and the bands they are measured against are reserved and the same across the UK. Scotland sets different rates only for non-dividend income, so a Scottish taxpayer's income tax on the £9,100 salary can differ, but the £3,152.63 dividend tax shown here is UK-wide.

What is the £9,100 Salary + £40,000 Dividends — Tax (UK, 2025/26)?

A £9,100 salary plus £40,000 of dividends in 2025/26 means £3,152.63 dividend tax — £3,152.63 in total. The salary uses your personal allowance and lower bands first, then dividends stack on top at 8.75%/33.75%/39.35% above the £500 allowance. A common limited-company director combination. It runs free in your browser on Gera Tools, with nothing uploaded.

£9,100 Salary + £40,000 Dividends — Tax (UK, 2025/26)

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Creator: Gera Tools
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This page shows the real tax on a £9,100 salary plus £40,000 of dividends for the 2025/26 UK tax year — a common limited-company director setup. The calculator above is pre-filled with this combination; change either figure for your own numbers.

£9,100 salary + £40,000 dividends — 2025/26

	Amount
Salary (other income)	£9,100
Dividend income	£40,000
Income tax on salary	£0.00
Covered by £500 dividend allowance	£500
Taxable dividends	£36,030
Dividend tax	£3,152.63
Total tax	£3,152.63
Dividends after tax	£36,847.38

The effective tax rate on the £40,000 of dividends alone is 7.88%.

The £9,100 salary is within the £12,570 personal allowance, so there is no income tax on it (National Insurance may still apply above £12,570).

Dividend band breakdown

Slice of dividends	Band	Rate	Tax
£36,030	Basic rate	8.75%	£3,152.63

How the stacking works

The salary fills your personal allowance and the income-tax bands first. The dividends then sit on top: the first £500 above the allowance is taxed at 0% (the dividend allowance), and the rest is taxed at 8.75%, 33.75% or 39.35% depending on which band each slice reaches. National Insurance is not charged on dividends.

Assumptions

2025/26 tax year, England/Wales/Northern Ireland for the salary’s income tax. Standard £12,570 personal allowance, no other allowances, reliefs, pension contributions or Gift Aid, no student loan, and no other income. Dividend tax is UK-wide (Scotland included). This is a planning estimate; your accountant and Self Assessment return are the authority.

Sources & as-of

Dividend allowance and rates: GOV.UK — Tax on dividends.
Personal allowance and income-tax bands: GOV.UK — Income Tax rates and Personal Allowances.
Tax year 2025/26. Page data as-of 2026-06-18. Rates can change at fiscal events — confirm current figures on GOV.UK.