Yes. Dividends are subject to income tax and USC at your marginal rates. However, they are not subject to PRSI, unlike salary.
2026 RatesDirector Tax PlanningLast reviewed:
Dividend vs Salary Calculator Ireland 2026
Compare the total tax cost of paying yourself through salary versus dividends as a company director in Ireland. Includes income tax, USC, PRSI, and corporation tax impact.
✓ Compare after-tax income from salary vs dividends✓ Includes PRSI and USC impact on both routes✓ Shows total cost to the company
✅ 2026 Rates⚖️ Salary vs Dividend
Salary PRSI4.2% employee + 11.15% employer
Dividend taxIncome tax + USC (no PRSI on dividends)
CT rate12.5% saved when paying salary
Best strategyDepends on your total income
Start Calculator →Salary
Deductible against corporation tax — saves 12.5%
Dividends
Paid from after-tax profits — no CT saving
PRSI
Dividends do not attract PRSI for directors
USC
Both salary and dividends are subject to USC
Compare Salary vs Dividend
Your Results
Personal Tax on Salary—
Net Income via Salary—
Total Cost to Company (Salary)—
Corporation Tax on Profits—
Personal Tax on Dividend—
Net Income via Dividend—
More Efficient Route—
Annual Saving from Best Route—
Confidence Score
Frequently Asked Questions
It depends on your total income. Salary reduces company profit (saving 12.5% CT) but attracts PRSI. At higher incomes, dividends may be more efficient. A blended approach is common.
Yes. If you are a proprietary director (owning 15%+ of shares), you are Class S PRSI. If non-proprietary, you pay Class A — which includes employer PRSI.
A director who owns or controls 15% or more of the company's share capital. Proprietary directors pay Class S PRSI (4%) rather than Class A.
Yes. Company pension contributions are deductible against corporation tax and not subject to income tax, USC, or PRSI when contributed. This is usually the most tax-efficient extraction method.
Official Sources
This calculator is based on legislation and guidance from the following official sources:
Need an exact calculation?
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