United States Dividend Tax Calculator

How dividend tax works in United States

In the United States, qualified dividends are taxed at the same rates as long-term capital gains: 0%, 15%, or 20% depending on your taxable income. This calculator uses 15% as a typical effective rate for estimation. Non-qualified dividends are taxed as ordinary income.

There is no separate tax-free allowance for dividends; they are included in your taxable income. The 3.8% Net Investment Income Tax may apply on investment income above $200,000 (single) or $250,000 (married); it is not included in this estimate.

Key differences from other countries

The US taxes qualified dividends at capital gains rates (0/15/20%) with no separate allowance; state tax may also apply on investment income.

Example calculation

On $10,000 gross dividends (single filer, 2026), tax in United States is about $1,500, leaving approximately $8,500 after tax (effective rate 15.00%). Use the calculator above for your own amount and filing status.

Methodology & sources

Rates and allowances are from IRS Publication 550, Revenue Procedure 2024-55 for 2026. This calculator is for estimation only and does not constitute tax or investment advice; withholding and final tax can differ. Consult a qualified advisor or https://www.irs.gov/taxtopics/tc404 for your situation.