Dividend Tax Calculator
Calculate federal and state tax on dividend income. Understand qualified vs non-qualified dividend tax rates, NIIT implications, and holding period requirements for preferential rates.
Dividend Income
Total dividends received from stocks, ETFs, mutual funds.
Dividends meeting holding period requirements. taxed at preferential 0-20% rates.
Tax Profile
Dividends add to total income, affecting qualified dividend rate thresholds.
Dividend Breakdown
Total Dividends:$10000.00
Qualified:$8000.00 (80%)
Non-Qualified:$2000.00
Total Income:$90000.00
Qualified Dividend Tax (Preferential Rate)
$1200.00
Rate:15%
0% Threshold:$47,150
15% Threshold:$518,900
Qualified dividends taxed at same preferential rates as long-term capital gains.
Non-Qualified Dividend Tax (Ordinary Rate)
$440.00
Rate:22%
Bracket:$47,150 - $100,525
Non-qualified dividends (ordinary dividends) taxed at your marginal ordinary income rate.
State Tax
State:CA
Rate:13.30%
State Tax:$1330.00
Most states tax dividends as ordinary income (same rate regardless of qualified status).
Total Tax on Dividends
$2970.00
Federal:$1640.00
State:$1330.00
Effective Rate:29.70%
Qualified Dividend Requirements
- Common Stock: 60+ days during 121-day period around ex-dividend date
- Preferred Stock: 90+ days during 181-day period
- US Company or Qualified Foreign: Must be US corporation or qualified foreign corporation (traded on US exchange or in country with tax treaty).
- Not Qualified: Dividends from tax-exempt organizations, REITs, MLPs, money market funds.
- Holding Period: Count from purchase date, includes ex-dividend date. Must hold for required period.
Dividend Tax Facts
- Qualified vs Non-Qualified: Qualified dividends get 0-20% preferential rates. Non-qualified taxed as ordinary income at 10-37%.
- Rate Thresholds: 0% under ~$47K (single), 15% for most taxpayers, 20% over ~$519K (single).
- State Tax: Most states tax all dividends as ordinary income. No preferential treatment for qualified dividends.
- NIIT: 3.8% additional tax on investment income for high earners (over $200K single, $250K married).
- REITs/MLPs: Dividends typically non-qualified. Taxed at ordinary rates but may have deductions.
- Foreign Stocks: May have foreign tax credit for taxes paid to foreign country on dividends.
- Dividend Funds: ETFs and mutual funds report qualified % on 1099-DIV each year.