Calculator
Dividend Tax Calculator
Estimate how much of your dividend income you actually keep, based on how much is qualified and your tax bracket.
Your income
Everything else taxable — salary, etc. — not counting the dividends above. This determines which bracket the dividends land in.
Most dividends from US stocks held over 60 days are qualified. Check your 1099-DIV — Box 1b shows the qualified portion.
Estimated Tax Owed
$750
15.0% effective rate on this dividend income
After-Tax Income
$4,250
Tax on Qualified ($5,000)
$750
Tax on Non-Qualified ($0.00)
$0.00
This is a simplified estimate for informational purposes only, based on 2026 federal brackets — it isn't tax advice. It doesn't account for state taxes, the Net Investment Income Tax, deductions, or credits. Consult a tax professional for your actual situation.
Qualified vs. non-qualified dividends, in plain English
Not all dividends are taxed the same way. "Qualified" dividends — generally, ones from US companies (or qualifying foreign ones) that you've held for more than 60 days around the dividend date — get taxed at the lower long-term capital gains rate: 0%, 15%, or 20%, depending on your income. "Non-qualified" dividends, including most REIT and some foreign dividends, get taxed as ordinary income, at your regular marginal rate, which is often higher.
This calculator applies the same "stacking" method the IRS itself uses: your non-qualified dividends are taxed as if they sit right on top of your other income, filling in whichever bracket comes next. Your qualified dividends are then stacked on top of that combined total, taxed at the qualified rate for whichever tier they land in — so a mix of both is common if your income crosses a bracket threshold.
This calculator uses 2026 federal tax brackets and the 2026 qualified dividend thresholds. It's a simplified estimate — your actual return may differ based on state taxes, deductions, and other income.
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