Home / Calculators / Corporation Tax Calculator 2026/27
Corporation Tax Calculator 2026/27
Corporation tax is 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between. Enter your profit below for an instant estimate.
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Your estimate
Change the numbers and press Calculate.
Estimates for 2026/27 for England, Wales and Northern Ireland taxpayers. Not personal tax advice. Scottish income tax bands differ.
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Key facts at a glance
19% up to £50,000
Small profits rate
25% above £250,000
Main rate
26.5% between the limits
Effective marginal rate
9 months and 1 day after year end
Payment due
How it works
What the calculator assumes, so you can trust the result.
How the calculator works
Profits up to £50,000 pay 19%. Profits over £250,000 pay 25%. Between them, tax is 25% less marginal relief of 3/200 x (upper limit – profit). The limits are divided by the number of associated companies, so a company with one associated company has limits of £25,000 and £125,000.
Worked example
Profit £80,000: 25% is £20,000, less marginal relief of 3/200 x (£250,000 – £80,000) = £2,550, giving tax of £17,450, an effective rate of 21.8%.
What this calculator leaves out
It assumes a full 12-month period and does not include losses brought forward, franked investment income or ring-fence profits. Short periods have pro-rated limits, so ask us if yours is not 12 months.
How the calculator works, step by step
Exactly what happens between pressing Calculate and seeing your result.
Enter your taxable profit
Use the profit your company makes in the accounting period after allowable expenses and capital allowances, before Corporation Tax. Your accountant's computation gives the exact figure.
Add associated companies
If another company is under common control, enter the total number of companies including this one. The £50,000 and £250,000 limits are divided by that number.
The calculator picks the rate
At or below the lower limit the rate is 19%. At or above the upper limit it is 25%. In between, 25% is charged and marginal relief is deducted.
Read your result
You see the tax bill, the effective rate, profit after tax and the limits that applied to your company.
The rates and rules we use
All figures are for the 2026/27 tax year and match GOV.UK.
| Item | Figure | Notes |
|---|---|---|
| Small profits rate | 19% | Profit up to £50,000 |
| Main rate | 25% | Profit of £250,000 or more |
| Marginal relief fraction | 3/200 | Applied to the gap between profit and the upper limit |
| Lower limit | £50,000 | Divided by associated companies |
| Upper limit | £250,000 | Divided by associated companies |
| Payment due | 9 months and 1 day | After the end of the accounting period |
The formula: Tax = 25% x profit – 3/200 x (upper limit – profit), for profit between the limits.
Worked examples
Real numbers run through the same calculation, so you can check your own result.
Example 1: £30,000 profit
The profit is below £50,000, so the whole amount is taxed at 19%. Tax is £5,700, profit after tax is £24,300 and the effective rate is 19.0%.
Example 2: £150,000 profit
25% of £150,000 is £37,500. Marginal relief is 3/200 x (£250,000 – £150,000) = £1,500. Tax is £36,000, an effective rate of 24.0%, leaving £114,000 after tax.
Example 3: £80,000 profit with one associated company
With two companies in the group, the limits halve to £25,000 and £125,000. 25% of £80,000 is £20,000, less marginal relief of 3/200 x (£125,000 – £80,000) = £675. Tax is £19,325, or 24.2%, compared with £17,450 for a standalone company.
Getting the most from the result
Tips
- Use your accountant's profit figure rather than your bank balance. Depreciation, stock and accruals all affect profit.
- Between £50,000 and £250,000 each extra pound of profit is taxed at an effective 26.5%, so pension contributions or equipment purchases can be unusually valuable.
- Set aside the tax during the year so the payment, due nine months and one day after year end, is not a surprise.
What the calculator leaves out
- Assumes a full 12-month accounting period. Short periods pro-rate the limits.
- Does not include losses brought forward, group relief, R&D credits or ring-fence profits.
- Treats all profit as trading profit with no distributions from other companies.
- Rates are for the 2026/27 financial year and may change in future Budgets.
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Ten legal ways to reduce Corporation Tax
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How to pay Corporation Tax: deadlines and penalties
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Buying equipment: capital allowances
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Questions people ask
Short answers to the questions that come with this calculator.
What is the corporation tax rate in 2026/27?
19% for profits up to £50,000, 25% above £250,000, and marginal relief in between.
When is corporation tax due?
Nine months and one day after the end of your accounting period. Interest runs from that due date.
What are associated companies?
Companies under common control. The profit limits are divided equally between them.
What is marginal relief?
Marginal relief softens the jump from 19% to 25%. For profit between £50,000 and £250,000 you pay 25% and then deduct 3/200 of the gap between your profit and £250,000.
Why is the effective rate 26.5% between the limits?
Each extra £1 of profit adds 25p of tax and also removes 1.5p of marginal relief, so the tax on the extra pound is 26.5p.
Does the calculator include the director's salary?
No. Enter profit after salary, employer National Insurance and other costs. Use our salary vs dividend calculator to see the effect of salary.
How do associated companies change the bill?
The limits are divided by the number of associated companies, so tax rises sooner. Two companies share a £25,000 lower limit and a £125,000 upper limit each.
Is the Corporation Tax rate different for a short accounting period?
The profit limits are reduced in proportion to the length of the period, so a six-month period has limits of £25,000 and £125,000.
Where do I pay Corporation Tax?
You pay HMRC online, usually by Faster Payments, using your 17-character payment reference. The bill is due nine months and one day after the period end unless you are a large company paying in instalments.
Keep reading
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Corporation tax service
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