REIT Dividend Calculator
See what a REIT actually pays you — before and after tax. REIT distributions are usually taxed as ordinary income, so the after-tax number is the one that counts.
How the REIT dividend calculator works
Gross income is amount × yield. The calculator then applies your marginal ordinary income tax rate to the whole distribution, because most REIT dividends are non-qualified and taxed like wages rather than at the lower qualified-dividend rates.
That ordinary-income treatment is the headline difference between REITs and ordinary dividend stocks, and it is why the after-tax yield can be noticeably lower than the advertised distribution yield. A 20% Section 199A deduction can reduce the tax on the ordinary-income portion; this tool shows the pre-deduction figure to stay conservative.
Because the tax bites every year in a taxable account, many investors hold REITs in an IRA or 401(k). Many REITs also pay monthly — plan a monthly target with the monthly dividend calculator, and dig into the qualified-vs-ordinary distinction with the dividend tax calculator.
Frequently asked questions
- How are REIT dividends taxed?
- Most REIT distributions are non-qualified, so they are taxed at your ordinary income rate rather than the lower qualified-dividend rates. Part of a distribution can also be a return of capital (which defers tax) or a capital gain. This calculator applies your marginal ordinary rate to the whole distribution as a conservative estimate.
- What is the 20% REIT dividend deduction?
- Under Section 199A, individuals can generally deduct 20% of qualified REIT dividends, which lowers the effective tax rate on that income. This calculator shows the pre-deduction figure to stay conservative; if the deduction applies to you, your actual tax will be lower than shown.
- What yield do REITs pay?
- Equity REITs commonly yield about 3–6%, often paid monthly or quarterly. Mortgage REITs (mREITs) can yield well into double digits but carry more interest-rate and credit risk, and high yields can come with falling share prices.
- Should I hold REITs in a retirement account?
- Because REIT income is taxed at ordinary rates, many investors hold REITs inside a tax-advantaged account like an IRA or 401(k), where the annual distribution is not taxed as received. In a taxable account, the after-tax yield shown here is closer to what you keep.
- How do I calculate income from a REIT?
- Multiply the amount invested by the REIT’s distribution yield for the gross income, then subtract tax at your marginal ordinary rate for the after-tax figure. A $100,000 investment at a 6% yield pays $6,000 gross; at a 24% rate that is $4,560 after tax.