Dividend Tax Calculator

Estimate the federal income tax on your dividends, split by type. Enter your filing status, your taxable income without dividends, and your qualified, ordinary, and REIT dividends. The calculator shows the tax on each type, the 20% section 199A deduction on REIT dividends, any 3.8% net investment income tax, total dividend tax, and the effective rate on all your dividends.

How dividends are taxed, in one paragraph

Qualified dividends are taxed at the long-term capital gains rates of 0%, 15%, or 20%. Ordinary (nonqualified) dividends, including most REIT dividends, are taxed at your regular income tax rates from 10% to 37%, although 20% of qualified REIT dividends is deductible. Both are stacked on top of your other taxable income, so the rate depends on where they land. Above $200,000 of modified AGI ($250,000 joint, $125,000 married filing separately), the 3.8% net investment income tax can apply as well.

Results are estimates for informational purposes only and cover federal tax; state income tax, credits, and deductions other than those described here are not included.

For the full rate tables and planning strategies, read dividend tax rates: qualified vs. ordinary. For which dividends qualify and how they are reported, see how dividends are taxed.

Where each input comes from

Do not enter capital gain distributions (box 2a) as dividends. They are taxed as long-term capital gains; add them to your capital gains in the capital gains calculator.

2026 rates the dividends fall into

Qualified dividend brackets, from Rev. Proc. 2025-32, apply to total taxable income including the dividends:

Ordinary dividends use the regular 2026 brackets — for a single filer, 12% up to $50,400, 22% up to $105,700, 24% up to $201,775, and so on to 37% above $640,600.

Worked example: a mixed dividend portfolio

Inputs: single; $90,000 of other taxable income; $8,000 qualified, $1,000 ordinary, and $2,000 REIT dividends.

1. Section 199A deduction: qualified REIT dividends get a 20% deduction, claimed on Form 8995: $2,000 × 20% = $400.
2. Ordinary and REIT dividends ($3,000 − $400 = $2,600 taxable): taxable income goes from $90,000 to $92,600, all inside the 22% bracket. Tax: $2,600 × 22% = $572.
3. Qualified dividends ($8,000): stacked on top, from $92,600 to $100,600. All of it is above the $49,450 ceiling and far below $545,500, so the rate is 15%. Tax: $1,200.
4. NIIT: estimated modified AGI is $90,000 + $16,100 + $11,000 = $117,100, well under $200,000. $0.
5. Total dividend tax: $1,772 on $11,000, an effective rate of 16.1%.

The REIT deduction is limited to 20% of your taxable income minus qualified dividends and capital gains, which only bites when REIT dividends are most of your income. To claim it you must have held the REIT shares more than 45 days around the ex-dividend date. The deduction lowers taxable income but not AGI, so it does not reduce MAGI for NIIT. If you also have business income, the QBI deduction calculator combines both.

How the calculator stacks dividends across the brackets

The calculator follows the Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 instructions. Ordinary and REIT dividends are taxed as the difference in bracket tax with and without them. Qualified dividends then sit on top of all ordinary taxable income and fill whatever is left of the 0% band before spilling into 15% and then 20%, so a dividend total that straddles a threshold is split between two rates rather than taxed at one.

Example near the 0% ceiling. Single, $40,000 of other taxable income, $15,000 of qualified dividends in 2026:

Applying 15% to all $15,000 would give $2,250, overstating the tax by $1,417.50.

The NIIT works the same lesser-of way. IRS Topic 559 applies the 3.8% to the smaller of your net investment income or the amount your modified AGI exceeds $200,000 (single and head of household), $250,000 (joint), or $125,000 (married filing separately). Because the income field is after deductions, the calculator estimates MAGI as that figure plus the standard deduction plus your taxable dividends. Example: single, $180,000 of other taxable income, $10,000 of dividends. Estimated MAGI is $180,000 + $16,100 + $10,000 = $206,100, so NIIT is ($206,100 − $200,000) × 3.8% = $231.80, not 3.8% of the full $10,000 ($380). If you itemize or have other investment income such as interest or capital gains, use the NIIT calculator for the full picture.

Qualified vs. ordinary: what $10,000 costs at each bracket

The table assumes the whole $10,000 sits inside one bracket and ignores NIIT, which adds the same 3.8% to both types for high earners.

More examples to check your result against

Head of household near the 0% ceiling. $60,000 of other taxable income and $10,000 of qualified dividends. The 0% band runs to $66,200, so $6,200 is taxed at 0% and $3,800 at 15%: $570, an effective 5.7%. Taxing all $10,000 at 15% would have shown $1,500.

Married couple fully inside the 0% band. $70,000 of other taxable income (for example, $102,200 of pension and IRA income minus the $32,200 standard deduction) and $20,000 of qualified dividends. Total taxable income is $90,000, under the $98,900 joint ceiling, so the dividends cost $0 in federal income tax. Add $5,000 of ordinary dividends and those are taxed at 12% ($600). Because ordinary income fills the brackets first, the qualified dividends now sit between $75,000 and $95,000 — still under $98,900, so they stay at 0%. Another $4,000 of ordinary income would start pushing qualified dividends into the 15% band.

High earner with NIIT. Single, $260,000 of other taxable income, $20,000 of qualified dividends. The dividends land between $260,000 and $280,000, well inside the 15% band: $3,000. Modified AGI is about $296,100 ($260,000 + $16,100 standard deduction + $20,000), so NIIT applies to the lesser of $20,000 or $96,100: 3.8% × $20,000 = $760. Total $3,760, an effective 18.8%. Because MAGI is far above the threshold, every dividend dollar carries the 3.8%.

Married filing separately. $120,000 of other taxable income and $15,000 of qualified dividends. The dividends land between $120,000 and $135,000, inside the 15% band (which ends at $306,850 for separate filers): $2,250. Estimated MAGI is $120,000 + $16,100 + $15,000 = $151,100, above the $125,000 separate-filer NIIT threshold, so NIIT is 3.8% × $15,000 = $570. Total $2,820.

What makes a dividend qualified

Publication 550 requires that the dividend be paid by a U.S. corporation or a qualified foreign corporation, and that you held the stock more than 60 days during the 121-day period that begins 60 days before the ex-dividend date. Preferred stock with dividends covering periods over 366 days needs more than 90 days in a 181-day window. Dividends from credit unions and savings institutions are really interest, and capital gain distributions are taxed separately — neither is a qualified dividend even if it appears in box 1b. Brokers report box 1b without knowing your hedging or holding period, so if you sold shortly after buying, check the holding period yourself.

Common input mistakes

• Entering box 1a as ordinary dividends. Box 1a already includes box 1b and box 5. Entering 1a and 1b separately double-counts the qualified amount.
• Using gross income as "other income." The brackets apply to taxable income, after deductions. Entering wages before the standard deduction overstates the rate.
• Counting reinvested dividends as untaxed. Dividends reinvested through a DRIP are taxable in the year paid, the same as cash.
• Including box 3 nondividend distributions. Return of capital is not taxed when paid; it reduces your basis instead.
• Forgetting state tax. Many states tax dividends at their regular income tax rates, without a lower rate for qualified dividends; the calculator shows federal tax only.

Using the result

• Withholding and estimated tax. Dividends have no withholding by default. If the calculator shows a meaningful total, add it to your estimated payments or increase W-4 withholding.
• Asset location. Ordinary dividends and REIT income cost the most in a taxable account; qualified-dividend stock funds cost the least.
• Year-end planning. If you are near the 0% ceiling, a deduction or retirement contribution that lowers taxable income can shift dividends into the 0% band dollar for dollar.

To see how dividend income interacts with your whole bracket picture, run the federal tax bracket calculator. If you hold REITs, the REIT calculator shows yield and distributions.