Qualified Dividend Tax Calculator
Estimate the tax on qualified dividends, which use the same 0%, 15% and 20% brackets as long-term capital gains.
How it works
Qualified dividends use the 0/15/20% long-term rates · Stacked above ordinary income · Tax = 15% layer × 0.15 + 20% layer × 0.20
Qualified dividends — from most U.S. and many foreign stocks held long enough — are taxed at the same favorable 0%, 15%, and 20% rates as long-term capital gains rather than as ordinary income. Like gains, they stack on top of your other taxable income, so your ordinary income determines which preferential bracket the dividends fall into. Ordinary (non-qualified) dividends, by contrast, are taxed at your regular income rate.
Worked example
A single filer with $50,000 of ordinary income and $5,000 of qualified dividends: the 0% bracket ends at $47,025, already used, so the dividends sit in the 15% band ($50,000–$55,000) and owe $750, leaving $4,250 after tax.
Frequently asked questions
What makes a dividend "qualified"?
It must be paid by a U.S. corporation or qualifying foreign company and you must hold the stock for a required period (generally more than 60 days around the ex-dividend date). Qualified dividends get the lower capital-gains rates.
How are qualified dividends taxed?
At 0%, 15%, or 20% depending on your total taxable income and filing status — the same brackets as long-term capital gains, and usually much lower than ordinary income tax rates.
What about ordinary dividends?
Non-qualified (ordinary) dividends do not get the preferential rates; they are taxed at your regular marginal income tax rate. Your 1099-DIV separates qualified from ordinary amounts.
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Educational estimate, not tax advice. Uses recent federal parameters that change yearly and ignores your full situation — confirm with a tax professional or the IRS.