Passive Income Tax Calculator
Calculate tax implications of passive income sources including dividends, rental income, interest, royalties, and pension income.
Passive Income Sources
Taxed at preferential rates: 0%, 15%, or 20% based on income bracket
Taxed at ordinary income rates
Business & Other Income
Passive Income Summary
Dividends:$12000.00
Net Rental:$18000.00
Interest:$3000.00
Royalties:$5000.00
Net Business:$12000.00
Pension/SS:$0
Total Passive Income
$50000.00
Monthly: $4166.67 | Hourly equivalent: $24.04/hr
Tax Calculation
Total Taxable:$100000.00
After Deduction:$85400.00
Federal Tax:$13841.00
SE Tax:$1695.55
Dividend Tax:$1800.00 (15%)
Effective Rate:13.84%
Passive Income Efficiency
Passive Ratio:50.0%
After-Tax Passive:$36159.00
Passive ratio shows how much of your total income comes from passive sources vs active work.
Tax Treatment by Income Type
- Qualified Dividends: Taxed at 0%, 15%, or 20% based on total taxable income bracket.
- Rental Income: Ordinary income rates. Deduct expenses (mortgage interest, repairs, depreciation).
- Interest Income: Ordinary income rates (same as W-2 wages).
- Royalties: Ordinary income. Can deduct related expenses if you own the intellectual property.
- Self-Employment: Ordinary rates + 15.3% SE tax (covers SS + Medicare).
- Pension: Generally taxed as ordinary income. Roth pensions may be tax-free.
- Social Security: Up to 85% taxable depending on combined income threshold.