Dividend Tax Calculator

How it works

The calculator splits your payout into two buckets. Qualified dividends get the long-term capital-gains rate (0%, 15% or 20%): enter your taxable income excluding these dividends, and the qualified amount stacks on top of it (above your ordinary income and any non-qualified dividends) across the 2026 brackets, so an amount spanning a threshold is split across rates rather than taxed at one flat rate. Ordinary (non-qualified) dividends are taxed at the marginal ordinary income rate you enter.

An optional flat state rate applies to the entire payout (qualified plus ordinary). The effective rate is total tax divided by total dividends. All math is exact; this is an estimate, not tax advice.

Worked example

A single filer with $100,000 taxable income (excluding these dividends) receives $2,000 qualified and $500 ordinary dividends, a 24% marginal rate, and no state tax:

• The $2,000 qualified stacks on $100,500 (income + the $500 ordinary), which sits in the 15% band ($49,450–$545,500), so all of it is taxed at 15%.
• Qualified tax = $2,000 × 15% = $300.00.
• Ordinary tax = $500 × 24% = $120.00; state tax = $0.
• Total tax = $420.00; after-tax = $2,500 − $420 = $2,080.00.
• Effective rate = $420 / $2,500 = 16.8%.

The formula

qualified_tax  = stack qualified_dividends on (taxable_income + ordinary)
                 across the 0% / 15% / 20% bands, summing tax per band
qualified_rate = qualified_tax / qualified_dividends   (blended; 0 if none)
ordinary_tax   = ordinary_dividends × marginal_ordinary_rate
state_tax      = (qualified + ordinary) × state_rate
total_tax      = qualified_tax + ordinary_tax + state_tax
after_tax      = (qualified + ordinary) − total_tax
effective_rate = total_tax / total_dividends

FAQ

What makes a dividend "qualified"?

Generally, dividends from US corporations (and qualifying foreign ones) where you held the shares long enough around the ex-dividend date. Qualified dividends get the preferential 0/15/20% long-term capital-gains rate.

How is the qualified rate chosen?

Enter your taxable income excluding these dividends; the qualified amount stacks on top (above your ordinary income and any non-qualified dividends) across the 2026 brackets (0% up to the first threshold, 15% in the middle band, 20% above the top), so an amount spanning a threshold is split across rates rather than taxed at one rate.

Does this include state tax?

Optionally: enter a flat state rate and it applies to the whole payout. Leave it at 0 for a federal-only estimate. This is an estimate, not tax advice.

Are REIT and bond-fund dividends qualified?

Usually not. Most REIT distributions, money-market and bond-fund interest dividends are ordinary (non-qualified) and taxed at your marginal income rate. Put those in the ordinary box, not the qualified one.

Does this include the 3.8% NIIT?

No. Higher earners (above roughly $200,000 modified AGI single, or $250,000 married filing jointly) owe an extra 3.8% Net Investment Income Tax on dividends. Add 3.8% on top if you are over those thresholds.