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.
Frequently Asked Questions
What makes a dividend "qualified"?
A dividend is qualified if paid by a US corporation or qualified foreign corporation AND you held the stock more than 60 days during the 121-day period beginning 60 days before the ex-dividend date. REIT, MLP, and most bond-fund distributions are NOT qualified.
What are the 2026 qualified dividend tax rates?
Single filers: 0% up to $48,350, 15% up to $533,400, 20% above. MFJ: 0% up to $96,700, 15% up to $600,050, 20% above. HoH: 0% up to $64,750, 15% up to $566,700, 20% above.
Do I also pay the 3.8% NIIT on dividends?
Yes, if your modified AGI exceeds $200,000 (single) or $250,000 (MFJ). The 3.8% Net Investment Income Tax applies to the smaller of your investment income or the amount over the threshold. It stacks on top of the 15%/20% dividend rate.
Are REIT dividends qualified?
Most REIT distributions are ordinary (non-qualified) and taxed at your marginal income rate. However, you may qualify for the 20% Section 199A pass-through deduction on REIT dividends, effectively reducing the top rate from 37% to 29.6% on that income.
Can I pay 0% tax on dividends?
Yes, if your total taxable income stays under the 0% threshold ($48,350 single / $96,700 MFJ in 2026). Retirees, sabbatical-takers, and founders between companies often structure income to fall in this zone and harvest gains at 0%.
What is the holding period for foreign dividends?
Same as US: more than 60 days in the 121-day window around ex-dividend date. Additionally, the foreign corporation must be in a tax treaty country or have shares readily tradable on a US exchange. ADRs typically qualify.