Find out how much federal tax you owe on your dividends. Qualified dividends get the 0%, 15% or 20% long-term rates, ordinary dividends are taxed like wages, and higher incomes may add the 3.8% net investment income tax.
Last updated:
You
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Everything except the dividends and gains below.
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Dividends (Form 1099-DIV)
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Box 1a minus box 1b (REIT, money market, short holding).
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They share the 0/15/20% brackets with qualified dividends.
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Interest, rents, etc., for the 3.8% NIIT.
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Enter your values to see the result.
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How to use the Dividend Tax Calculator
Pick the tax year and filing status.
Enter your other income: wages, pensions, interest and anything else besides the dividends.
Enter qualified dividends (1099-DIV box 1b) and the non-qualified rest of box 1a.
Add long-term gains or a state rate if you want a fuller picture.
Press Calculate dividend tax to see the tax, effective rate and bracket split.
How dividend tax is calculated
The IRS taxes qualified dividends with the Qualified Dividends and Capital Gain Tax Worksheet. Ordinary income is placed in the brackets first; qualified dividends and long-term gains are stacked on top and taxed at 0%, 15% or 20% depending on where they land.
Taxable income = all income − standard or itemized deduction
Ordinary part = taxable income − (qualified dividends + net long-term gains), taxed at 10% to 37%
0% portion = the part of the stack below the 0% threshold, 15% portion up to the 20% threshold, 20% above
Example (2026, single): $60,000 salary and $10,000 of qualified dividends. Taxable income is $70,000 − $16,100 = $53,900, of which $43,900 is ordinary. The 0% zone ends at $49,450, so $5,550 of the dividends is taxed at 0% and $4,450 at 15%: $667.50 of tax, an effective 6.7% on the dividends.
2026 qualified dividend tax rates
Filing status
0%
15%
20%
Single
up to $49,450
$49,451 – $545,500
over $545,500
Married filing jointly
up to $98,900
$98,901 – $613,700
over $613,700
Married filing separately
up to $49,450
$49,451 – $306,850
over $306,850
Head of household
up to $66,200
$66,201 – $579,600
over $579,600
Thresholds are taxable income from IRS Rev. Proc. 2025-32. For 2025 they were $48,350 / $533,400 (single), $96,700 / $600,050 (joint), $48,350 / $300,000 (separate) and $64,750 / $566,700 (head of household).
Ways to lower the tax on dividends
Hold for the required period. Sell too soon around the ex-dividend date and a qualified dividend becomes ordinary.
Put ordinary-dividend payers in tax-advantaged accounts. REITs and bond funds are often better inside an IRA or 401(k).
Use the 0% bracket in low-income years, for example early retirement before Social Security or required withdrawals begin.
Watch the NIIT line. Pre-tax 401(k) or HSA contributions lower MAGI and can keep you under the 3.8% threshold.
Frequently asked questions
How are qualified dividends taxed in 2026?
At the long-term capital gains rates of 0%, 15% or 20%, based on your taxable income. For 2026 the 0% rate applies up to $49,450 of taxable income for single filers and $98,900 for married couples filing jointly; the 20% rate starts above $545,500 single and $613,700 joint.
What is the difference between qualified and ordinary dividends?
Qualified dividends come from US companies or qualifying foreign companies and you held the shares more than 60 days during the 121-day period around the ex-dividend date. Everything else, such as most REIT and money market dividends, is ordinary and taxed at your regular income tax rate of 10% to 37%.
Can I really pay 0% tax on dividends?
Yes. If your taxable income, including the dividends, stays under the 0% threshold, qualified dividends in that range are tax-free federally. Your wages fill the brackets first, so the 0% zone is what is left between your other taxable income and the threshold.
When does the 3.8% net investment income tax apply?
When modified AGI is above $200,000 (single or head of household), $250,000 (married filing jointly) or $125,000 (married filing separately). The 3.8% is charged on the smaller of your net investment income or the amount of MAGI above the threshold. These thresholds are not adjusted for inflation.
Where do I find my qualified dividends?
On Form 1099-DIV from your broker: box 1a shows total ordinary dividends and box 1b shows the part that is qualified. Enter box 1b as qualified and box 1a minus 1b as ordinary dividends in this calculator.
Are dividends in an IRA or 401(k) taxed?
Not each year. Dividends earned inside a traditional IRA or 401(k) are taxed only as ordinary income when you withdraw, and inside a Roth account qualified withdrawals are tax-free. This calculator is for dividends in taxable brokerage accounts.
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