Dividend Tax Calculator
Estimate the 2026 federal tax on your qualified and ordinary dividends — including the 3.8% Net Investment Income Tax — and see your effective rate and after-tax income.
How dividend tax is calculated
The calculator splits your dividends into two buckets. Qualified dividends are taxed at the preferential long-term capital-gains rates — 0%, 15%, or 20% — that stack on top of your other taxable income. Ordinary dividends are added to your ordinary income and taxed at your marginal bracket, exactly like a paycheck.
For 2026 (the tax year you file in 2027), qualified dividends are taxed at 0% until taxable income reaches $49,450 for a single filer or $98,900 filing jointly, then 15% up to $545,500 / $613,700, and 20% above that. Ordinary dividends follow the seven federal brackets from 10% to 37%.
Once your income crosses $200,000 (single) or $250,000 (joint), an extra 3.8% Net Investment Income Tax applies to your dividends. The tool layers that on automatically and adds your optional state rate to produce a total and an effective rate. All figures use the 2026 standard deduction for your filing status.
Frequently asked questions
- How are dividends taxed in 2026?
- It depends on the type. Qualified dividends are taxed at the long-term capital-gains rates of 0%, 15%, or 20% depending on your taxable income. Non-qualified (ordinary) dividends — common from REITs, BDCs, and money-market funds — are taxed at your ordinary income rate, the same as wages. High earners may also owe the 3.8% Net Investment Income Tax on top.
- What makes a dividend "qualified"?
- A dividend is qualified when it is paid by a US corporation (or a qualifying foreign one) and you held the shares for more than 60 days during the 121-day window around the ex-dividend date. Most regular dividends from US stocks and stock ETFs are qualified. REIT distributions, BDC dividends, and most covered-call ETF income are not.
- What are the 2026 qualified-dividend tax brackets?
- For 2026, qualified dividends are taxed at 0% up to $49,450 of taxable income (single) or $98,900 (married filing jointly); 15% above that up to $545,500 (single) or $613,700 (joint); and 20% above those ceilings. Head-of-household and married-filing-separately have their own thresholds, which the calculator applies automatically.
- What is the Net Investment Income Tax (NIIT)?
- NIIT is an extra 3.8% tax on investment income — including dividends — that applies once your modified adjusted gross income exceeds $200,000 (single or head of household), $250,000 (married filing jointly), or $125,000 (married filing separately). These thresholds are set by statute and are not adjusted for inflation. The calculator adds NIIT automatically when your income crosses the line.
- Does this include state taxes?
- Only if you enter a state rate. Most states tax dividends as ordinary income, and rates range from 0% (e.g., Florida, Texas, Washington) to over 10% (e.g., California). The calculator applies your entered rate as a flat estimate across all dividends. Check your own state’s rules for the exact treatment.
- Is this tax advice?
- No. This is an educational estimate for the 2026 tax year using the standard deduction and the published federal brackets. It does not handle every credit, phase-out, the Alternative Minimum Tax, or itemized deductions. Confirm your actual liability with a qualified tax professional or the IRS.
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