ComputeYard

The math, explained — built by a derivatives quant.

Dividend Tax Calculator

Estimate US tax on your dividends — qualified dividends get the preferential 0%, 15% or 20% rate; ordinary (non-qualified) dividends are taxed at your marginal income rate, with an optional flat state tax on the whole payout. Rates as of the 2025 US tax year. Federal estimate — verify current figures before filing.

How it works

The calculator splits your payout into two buckets. Qualified dividends are taxed at the long-term capital-gains rate — 0%, 15% or 20% — chosen from your filing status and total taxable income using the 2025 brackets. 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 receives $2,000 qualified and $500 ordinary dividends, a 24% marginal rate, and no state tax:

  • $100,000 is above $48,350 and below $533,400, so the qualified rate is 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_rate = 0% / 15% / 20%  (from filing status + taxable income)
qualified_tax  = qualified_dividends × qualified_rate
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?
From your filing status and total taxable income against the 2025 brackets: 0% up to the first threshold, 15% in the middle band, and 20% above the top threshold.
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.

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