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Dividend Tax Estimator
Calculate federal taxes on qualified and ordinary dividends based on your filing status and income level. Understand how dividend type affects your after-tax returns.
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Use final Form 1099-DIV amounts for tax year 2026. Do not infer tax character from an asset label or a preliminary Section 19a notice.
Understanding dividend taxation
Qualified dividends receive preferential tax rates (0%, 15%, or 20%) based on your total taxable income. Use the qualified amount reported on your final Form 1099-DIV; payer and holding-period rules determine eligibility. Ordinary dividends are taxed at your marginal income tax rate. The Net Investment Income Tax (NIIT) adds 3.8% on the lesser of net investment income or MAGI above the filing-status threshold. Enter MAGI separately to include NIIT; without it, totals exclude that tax. This scenario treats the entered dividends as your only net investment income. Other investment income and allocable deductions can change the result; see IRS NIIT guidance. Brackets and thresholds shown are for tax year 2026 (IRS Rev. Proc. 2025-32), the year whose returns are filed in 2027. Ordinary income fills the regular brackets first; qualified dividends stack on top at the 0/15/20% long-term capital-gains rates.
Section 199A REIT dividends, municipal interest and AMT exposure, return of capital, directly held Section 1256 contracts, and direct MLP Schedule K-1 income are distinct tax categories. This dividend calculator does not collapse those categories into qualified or ordinary dividends.
