Calculator
Dividend Tax Calculator
Use this free dividend tax calculator to estimate the federal tax on your dividend income and how much you actually keep. Enter your dividends, your other taxable income, and your filing status, and it applies the 2026 rates for qualified and non-qualified dividends, plus NIIT and optional state tax.
Enter Your Values
100%
Your dividend tax
Estimated Tax Owed
$750
Federal · 15.0% effective rate
You Keep
$4,250
of $5,000 in dividends
Qualified status is saving you $350 in federal tax compared with ordinary income rates.
Qualified dividends
$5,000 · 15.0% effective
$750
Non-qualified dividends
None
$0.00
Net Investment Income Tax
Est. MAGI $91,100 vs $200,000 threshold
$0.00
Estimates only, based on 2026 federal brackets — not tax advice. State tax uses a flat top-rate approximation, and deductions or credits can change your actual bill. Consult a tax professional for your return.
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.
The 2026 dividend tax rates
For 2026, the 0% qualified rate covers taxable income up to $49,450 for single filers and $98,900 for married couples filing jointly. The 15% rate runs up to $545,500 (single) or $613,700 (joint), and 20% applies above that. Non-qualified dividends follow the ordinary brackets instead: 10%, 12%, 22%, 24%, 32%, 35%, and 37%, with a single filer's 22% bracket running from $50,400 to $105,700 of taxable income. These figures come from IRS Revenue Procedure 2025-32.
The Net Investment Income Tax
Above certain income levels, an additional 3.8% surtax applies to investment income, including dividends. For 2026 the threshold is $200,000 of modified adjusted gross income (MAGI) for single filers and $250,000 for married couples filing jointly — figures that, unlike the regular brackets, are set by statute and don't rise with inflation. This calculator estimates your MAGI from what you've entered; if you know your real MAGI, enter it in advanced options for a more precise NIIT estimate.
REIT dividends and the Section 199A deduction
REIT dividends are always non-qualified, taxed as ordinary income — but a meaningful share of that income often qualifies for a 20% deduction under Section 199A, which lowers the effective top federal rate on that portion from 37% to roughly 29.6%. If you know what share of your non-qualified dividends come from REITs, enter it in advanced options to apply this.
Worked examples: what a dividend really costs you
Take a single filer with $45,000 of other taxable income and $10,000 of qualified dividends. The first $4,450 fills the rest of the 0% band (up to $49,450) and the remaining $5,550 is taxed at 15%, for $832.50 in tax, an effective rate of about 8.3%.
Now give the same filer $70,000 of other taxable income. Ten thousand dollars of qualified dividends is all taxed at 15%, or $1,500. If those same dividends were non-qualified, they would land in the 22% ordinary bracket and cost $2,200, so whether a dividend qualifies can change the bill by hundreds of dollars.
How this calculator works
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. NIIT and state tax are calculated separately and shown as their own line items in the breakdown.
Enter your other income after deductions, since tax brackets apply to taxable income rather than gross pay. The 2026 standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly, so a single filer earning $70,000 in salary would enter about $53,900 if they take the standard deduction.
What this estimate leaves out
This is a simplified estimate, so your actual return may differ. It doesn't include credits, itemized deductions, or the SALT cap on deducting state taxes federally. State tax uses each state's top marginal rate as a flat approximation rather than that state's real bracket structure — most states give dividends no preferential rate versus other income, taxing qualified and non-qualified dividends identically. Dividends earned inside an IRA or 401(k) are generally not taxed in the year they're paid, so this calculator is aimed at taxable brokerage accounts.
Turning tax into a real yield
Tax lowers what a dividend is actually worth to you. Start with a stock's current yield from the Dividend Yield Calculator, then apply your rate from above. To see the income your shares produce before tax, use the Dividend Calculator. Reinvesting doesn't avoid the tax, since reinvested dividends are still taxed in the year they're paid, but you can see how much faster they grow with the DRIP Calculator. If you're planning to live off dividends, the FIRE Calculator shows what a pre-tax income target requires.
Frequently asked questions
What are the qualified dividend tax rates for 2026?+
Qualified dividends are taxed at 0%, 15%, or 20% depending on your total 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 15% rate applies up to $545,500 (single) or $613,700 (joint), and 20% applies above that. These thresholds come from IRS Revenue Procedure 2025-32.
What makes a dividend qualified?+
Generally, it must be paid by a U.S. corporation or a qualifying foreign corporation, and you must have held the shares for more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Your Form 1099-DIV shows the qualified portion in Box 1b. Dividends that don't meet the tests are taxed as ordinary income.
How does my other income change the rate on my dividends?+
Your other taxable income fills the brackets first, and dividends are stacked on top. For example, a single filer with $45,000 of other taxable income and $10,000 of qualified dividends pays 0% on the first $4,450 of dividends and 15% on the remaining $5,550, for $832.50 of federal tax, an effective rate of about 8.3%. The same filer with $70,000 of other income pays 15% on all $10,000, or $1,500.
How much more tax do non-qualified dividends cost?+
It depends on your bracket. A single filer with $70,000 of other taxable income pays $1,500 of federal tax on $10,000 of qualified dividends (15%), but $2,200 if the same dividends are non-qualified, because they are taxed at the 22% ordinary rate instead. Holding shares long enough for dividends to qualify can be worth real money.
Does this calculator include the Net Investment Income Tax and state tax?+
Yes. The Net Investment Income Tax (NIIT) — a 3.8% surtax on investment income above $200,000 (single) or $250,000 (married filing jointly) MAGI — is estimated automatically; for most filers under that threshold it simply computes to $0. State tax is optional: pick your state in advanced options to see a rough estimate using that state's top marginal rate, shown as a separate figure rather than folded into the federal total, since most states tax dividends as ordinary income with no qualified-dividend discount.
What is the Net Investment Income Tax (NIIT), exactly?+
It's a 3.8% surtax on investment income — including dividends, interest, and capital gains — that applies once your modified adjusted gross income (MAGI) crosses $200,000 (single) or $250,000 (married filing jointly). Unlike the regular tax brackets, these thresholds are set by statute and aren't adjusted for inflation, so more households cross them each year. This calculator estimates your MAGI from the income you've entered; use the advanced MAGI field if you know your actual figure for a more precise result.
What is the Section 199A deduction for REIT dividends?+
REIT (real estate investment trust) dividends are always taxed as ordinary income, never at the qualified rate — but many qualify for a 20% deduction under Section 199A, which effectively lowers the top federal rate on that portion from 37% to about 29.6%. If some of your non-qualified dividends come from REITs, enter that percentage in advanced options to apply this deduction.
Do I pay tax on dividends that I reinvest?+
Yes. In a taxable account, reinvested dividends are generally taxed in the year they're paid, as if you had received the cash and then used it to buy more shares. Dividends inside tax-advantaged accounts such as IRAs and 401(k)s are generally not taxed in the year they're paid — this calculator is aimed at taxable brokerage accounts.
Are dividends in a Roth IRA or 401(k) taxed?+
Generally not in the year they're paid. Inside a Roth IRA, qualified withdrawals in retirement are tax-free too. In a traditional IRA or 401(k), dividends grow tax-deferred and withdrawals are taxed as ordinary income later. That's a large part of why many investors hold higher-yield or non-qualified payers, like REITs, inside tax-advantaged accounts.
Related tools
Dividend Calculator
Estimate the annual, quarterly, and monthly income your holdings produce.
Open tool →DRIP Calculator
See how reinvested dividends compound your position over the years.
Open tool →Dividend Yield Calculator
Work out a stock's dividend yield from its annual dividend and share price.
Open tool →FIRE Calculator
Find your financial independence number and when you could reach it.
Open tool →Compound Interest Calculator
Project the growth of savings with regular contributions over time.
Open tool →