Corporation Tax Calculator UK 2026

Corporation Tax Calculator UK 2026

Corporation tax

£22,750

22.75% effective · marginal 26.5% on the next £

2026/27 rates · Last checked · Sources in page details

Profit split by tier

How your profit divides across the three corporation-tax tiers.

£0£100,000

Corporation tax £22,750

Rates 2026/27

Small profits

19%

Up to £50,000

Marginal

~26.5%

£50,000 to £250,000

Main

25%

Above £250,000

Breakdown

Profit

£100,000

− Tax at main rate (25%)

− £25,000

+ Marginal relief

+ £2,250

= Corporation tax

£22,750

Where your tax goes

on £22,750 corporation tax

This is an estimate. The government does not set aside your exact tax for these areas.

21%

£4,846

Welfare

≈ 69 weeks of welfare per citizen

21%

£4,755

Health

≈ 485 days of NHS care (per citizen)

12%

£2,707

State Pensions

≈ 11 weeks of state pension

11%

£2,457

National Debt Interest

10%

£2,343

Education

≈ 62 school days funded

6%

£1,251

Defence

See the full UK budget →

+ £4,413 across public order & safety, transport, business & industry and 6 more

Estimates onlyShow

Calculations use HMRC published rates for education and illustration. They are not regulated financial, tax, or legal advice. Verify against your own tax position before filing or making financial decisions.

Where does it all go?

UK public spending 2024/25, line by line

£1.29 trillion across 15 categories, welfare, NHS, debt interest, defence, the lot.

Background reading

UK corporation tax in FY 2026

Show

Corporation tax is 19% on profits up to £50,000 and 25% on profits of £250,000 or more. Between those bands, marginal relief tapers the rate smoothly. Associated companies under common control share the £50k and £250k limits, so adding a second company can pull a profitable trading company into the marginal band sooner than expected.

  • What is the UK corporation tax rate for 2026/27?

    19% small profits rate on profits up to £50,000. 25% main rate on profits of £250,000 or more. Between £50,000 and £250,000, marginal relief applies, giving an effective marginal rate of 26.5% on the slice above £50,000.

  • How does marginal relief work?

    For a single company with no franked investment income, HMRC's marginal relief simplifies to: tax at 25% minus 3/200 of the gap between £250,000 and your profit. The result is a smooth taper, £50,000 profit → 19%, £100,000 → £22,750 (≈22.75%), £250,000 → 25%. Each extra £1 of profit inside the relief band costs an effective 26.5% in tax. (Associated companies divide the £50k and £250k thresholds; a short accounting period prorates them.)

  • What are 'associated companies'?

    Two or more companies under common control. The £50,000 and £250,000 limits are divided between them. Two associated companies each get £25,000/£125,000 limits, three get £16,667/£83,333, and so on. Stops accidental gaming.

  • Are dividends tax-deductible for the company?

    No. Dividends are paid from post-corporation-tax profit. Salary, employer NIC and pension contributions are all corporation-tax deductible, which is part of why the salary vs dividend mix matters.

Privacy, sources & last reviewed14 May 2026 · Show

Privacy and independence

Built and maintained by Afterax as an independent educational UK tax calculator project. Calculations run in your browser using HMRC 2026/27 rates. Inputs can be saved on this device and included in share links.

Sources

Bands, thresholds and reliefs come from official sources and are checked when a Budget or in-year change is announced.

Last reviewed 14 May 2026 · updated for 2026/27 · view changelog →