Calculate federal tax on your dividends — qualified (0/15/20%) vs ordinary rates — based on your income.
Qualified dividends are taxed at the lower long-term capital gains rates: 0%, 15%, or 20% depending on your income. Ordinary (non-qualified) dividends are taxed at your regular income tax rate (10%-37%). To be qualified, you must hold the stock for more than 60 days around the ex-dividend date.
For 2026: 0% if your taxable income is under ~$48,350 (single) / ~$96,700 (MFJ); 15% for most middle incomes; and 20% for high earners above ~$533,400 (single). High earners may also owe the 3.8% Net Investment Income Tax.
At the corporate level the company pays tax on profits, then shareholders pay tax on dividends — that's the "double taxation" of dividends. The qualified-dividend lower rates partially offset this for individual investors.
If qualified and you're in the 15% bracket, $10,000 in dividends costs $1,500 in federal tax. If ordinary/non-qualified at a 22% rate, it's $2,200. The calculator shows your exact amount based on income.
Estimates for 2026 using IRS supplemental wage rules and FICA. Withholding shown is not final tax — actual liability is settled at filing. Not tax advice.
Tax calculations are estimates for educational and informational purposes only. This site does not provide tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified tax professional for advice specific to your situation. Data sourced from IRS publications and official state tax authority websites.
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