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Free tool · 2026 tax year

Salary vs Dividend Calculator — paying yourself from a (Pty) Ltd

If you own a company, should you pay yourself a salary or a dividend? Compare the tax on each and see how much you actually keep.

Simplified comparison for the 2026 year (excludes SBC rates, medical credits, UIF and other deductions). For a full picture, speak to a tax practitioner. See also sole proprietor vs (Pty) Ltd.

How the two routes are taxed

Salary is a deductible expense for the company (so it pays no tax on that profit), but you pay PAYE on it at the individual rates.

Dividends are paid from after-tax profit: the company first pays 27% income tax, then a 20% dividends tax is withheld when the money is paid to you.

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