Dividend Tax Calculator
Estimate your federal tax on dividends for 2026, 2025, or 2024. Enter your qualified and ordinary dividends along with your other income to see your tax at the preferential qualified dividend rates, ordinary income rates, and the 3.8% Net Investment Income Tax (NIIT).
Standard deduction ($16,100) applied automatically.
Held >60 days — taxed at 0%, 15%, or 20%.
Taxed as ordinary income at your marginal rate.
Qualified Dividend Tax
$1,500Ordinary Dividend Tax
$440NIIT (3.8%)
$0Total Dividend Tax
$1,940| Qualified Dividend Tax | $1,500 |
| Ordinary Dividend Tax | $440 |
| Net Investment Income Tax (NIIT, 3.8%) | $0 |
| Total Dividend Tax | $1,940 |
| Effective Rate on Dividends | 16.17% |
| Rate | Dividends in Band | Tax |
|---|---|---|
| 15.00% | $10,000 | $1,500 |
| Total | $10,000 | $1,500 |
Qualified vs ordinary dividends
Qualified dividends — paid by US or qualified foreign corporations on stock you held more than 60 days during the 121-day window around the ex-dividend date — are taxed at the preferential long-term capital gains rates of 0%, 15%, or 20%. Ordinary (non-qualified) dividends fail that holding test and are taxed as ordinary income at your marginal bracket (10%–37%). On top of either, a 3.8% Net Investment Income Tax applies once your MAGI exceeds $200,000 (single) or $250,000 (married filing jointly).
Your other income fills the brackets first; qualified dividends stack on top and are taxed at the rate for the remaining space. So the rate you pay depends on total taxable income, not the dividend amount alone.
Qualified dividend rate thresholds (taxable income)
| Filing status | 0% rate up to | 15% rate up to | 20% rate above |
|---|---|---|---|
| Single (2025) | $48,475 | $533,400 | over $533,400 |
| Single (2026) | $49,450 | $545,500 | over $545,500 |
| Married filing jointly (2025) | $96,950 | $600,050 | over $600,050 |
| Married filing jointly (2026) | $98,900 | $613,700 | over $613,700 |
| Head of household (2025) | $64,850 | $566,700 | over $566,700 |
| Head of household (2026) | $66,200 | $579,600 | over $579,600 |
| Married filing separately (2025) | $48,475 | $300,025 | over $300,025 |
| Married filing separately (2026) | $49,450 | $306,850 | over $306,850 |
Source: IRS Rev. Proc. 2024-40 (2025) and Rev. Proc. 2025-32 (2026). Qualified dividends follow the long-term capital gains breakpoints.
Worked example (2026)
Single filer with $90,000 of wages, $12,000 of qualified dividends, and $3,000 of ordinary dividends:
- Ordinary dividends taxed at the marginal income rate: $660
- Qualified dividends taxed at preferential rates: $1,800 (15% on $12,000)
- Net Investment Income Tax (3.8%): $0
- Total dividend tax: $2,460 (16.4% of $15,000 in dividends)
Because the wages already fill the 0% band, the qualified dividends here are taxed at 15%, not 0%. MAGI stays under $200,000, so no NIIT applies in this example.
Frequently asked questions
What is the difference between qualified and ordinary dividends?
Qualified dividends are paid by US corporations or qualified foreign corporations on stock held for more than 60 days during the 121-day period around the ex-dividend date. They are taxed at the lower long-term capital gains rates of 0%, 15%, or 20%. Ordinary (non-qualified) dividends do not meet these holding requirements and are taxed as ordinary income at your regular federal income tax bracket rates, which can be as high as 37%.
What are the 2025 qualified dividend tax rates?
For 2025, qualified dividends are taxed at 0% if your taxable income is at or below $48,475 (single) or $96,950 (married filing jointly). The 15% rate applies up to $533,400 (single) or $600,050 (MFJ). Income above those thresholds is taxed at 20%. Your other income fills the brackets first, so qualified dividends are taxed at the rate corresponding to the remaining bracket space.
What is the Net Investment Income Tax (NIIT) on dividends?
The NIIT is an additional 3.8% surtax that applies to investment income -- including both qualified and ordinary dividends -- for taxpayers with modified adjusted gross income (MAGI) above $200,000 (single) or $250,000 (married filing jointly). The tax is calculated on the lesser of your total dividend income or the amount by which your MAGI exceeds the threshold. The NIIT is separate from the regular income tax on dividends.
How does my other income affect my dividend tax rate?
Your other income (such as wages) fills up the tax brackets first. Qualified dividends are then stacked on top and taxed at the rate for the remaining bracket space. For example, if your taxable wages already exceed the 0% qualified dividend threshold, your qualified dividends will be taxed at 15% or 20% rather than 0%, even if the dividend amount itself would otherwise fall in the 0% band.
Sources
Your dividend tax also depends on where you live.
State taxes can significantly change your total liability. See how it varies.
Key Tax Terms
Qualified Dividends
Dividends that meet IRS holding-period and company requirements, taxed at the lower long-term capital gains rates (0%, 15%, or 20%) instead of ordinary income rates.
Capital Gains
The profit from selling a capital asset (stocks, real estate, etc.) for more than its purchase price. Capital gains are classified as short-term or long-term based on holding period.
Net Investment Income Tax (NIIT)
A 3.8% surtax on investment income (interest, dividends, capital gains, rental income) for individuals with modified AGI above $200,000 (single) or $250,000 (married filing jointly).
Taxable Income
The portion of your income that is actually subject to federal income tax, calculated by subtracting the standard or itemized deduction from your AGI.
Effective Tax Rate
Your total federal income tax divided by your total income, expressed as a percentage. It represents the average rate at which your income is actually taxed.
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