Qualified Dividend Tax Calculator
Calculate your federal tax on qualified dividends using the 2026 long-term capital gains brackets (0%, 15%, 20%) and compare with ordinary dividends taxed at marginal income rates. Works for single, MFJ, and head-of-household filers.
Qualified vs Ordinary Dividends
Qualified dividends are paid by most US corporations and many foreign corporations on shares held more than 60 days during the 121-day period around the ex-dividend date. They are taxed at the favorable long-term capital gains rates of 0%, 15%, or 20% depending on total taxable income. Ordinary (non-qualified) dividends — including most REITs, master limited partnerships, and some foreign companies — are taxed at your full marginal income rate.
2026 Qualified Dividend Brackets
Single: 0% on taxable income up to $48,350 — 15% from $48,350 to $533,400 — 20% above $533,400. Married filing jointly: 0% up to $96,700 — 15% up to $600,050 — 20% above. Head of household: 0% up to $64,750 — 15% up to $566,700 — 20% above. These thresholds apply to total taxable income, so dividends "stack" on top of your wages.
The Net Investment Income Tax (NIIT)
On top of the 0%/15%/20% rates, dividends (qualified or not) face an additional 3.8% NIIT when modified adjusted gross income exceeds $200,000 (single) or $250,000 (MFJ). The NIIT is not phased in — it applies to every dollar of investment income above the threshold. This calculator adds NIIT automatically when your income exceeds those limits.
Tax Efficiency Strategies
Hold dividend-paying funds in tax-advantaged accounts (Roth IRA, traditional IRA, HSA) so dividends grow tax-free or tax-deferred. In taxable accounts, favor ETFs with low distribution yields, qualified-dividend-heavy holdings, and avoid REITs. Harvest tax losses to offset dividend income. And be aware: a year of low wages can push dividend income into the 0% bracket — retirees, sabbatical-takers, and founders between jobs often pay $0 on dividends.