Dividend Tax Calculator
Dividend Tax Calculator
Calculate tax on qualified and ordinary dividends
$
$
$
%
Formula
Qualified Dividend Tax = LTCG bracket rate (0/15/20%). Ordinary Dividend Tax = marginal income tax rate. Plus NIIT (3.8%) if above threshold.
Frequently Asked Questions
What is the difference between qualified and ordinary dividends?
Qualified dividends meet IRS holding period requirements (held 60+ days) and are from U.S. or qualifying foreign corporations. They are taxed at the lower LTCG rates (0%, 15%, or 20%). Ordinary dividends are taxed at your regular income tax rate (10-37%).
How can I minimize dividend taxes?
Hold dividend stocks in tax-advantaged accounts (IRA, 401k), ensure dividends qualify for preferential rates by holding 60+ days, use tax-loss harvesting to offset gains, and consider municipal bond funds for tax-free income.
Do I owe the 3.8% NIIT on dividends?
The Net Investment Income Tax applies if your modified AGI exceeds $200,000 (single) or $250,000 (married filing jointly). It is assessed on the lesser of your net investment income or the amount by which your MAGI exceeds the threshold.
You may also need
$
Capital Gains Tax Calculator (Detailed)
Free detailed capital gains tax calculator. Calculate short-term and long-term capital gains tax with 2024 brackets, NIIT, and state tax estimates.
Finance$
Tax Calculator
Free income tax calculator. Estimate your federal and state income tax for the current year. See your effective tax rate and tax bracket.
Finance$
Investment Calculator
Free investment calculator. Calculate investment returns with regular contributions, compound interest, and see your money grow over time.
Finance