2026 tax year
Dividend tax calculator
Two dividends of the same size can be taxed very differently. One word on the 1099 decides it.
Dividends come in two kinds. Qualified dividends, most from US stocks you have held long enough, are taxed at the same low 0/15/20% rates as long-term capital gains. Ordinary (non-qualified) dividends are taxed at your regular income rate. This works out both, and adds the 3.8% net investment income tax where it applies.
Positions dividends in the brackets.
Box 1b, taxed at 0/15/20%.
Taxed at your ordinary rate.
Enter your dividends and other income.
Worked example, $8,000 in dividends, qualified vs ordinary
A single filer with $80,000 of other income receives $8,000 in dividends. The classification is the whole story:
| If the $8,000 is… | Federal tax | Effective rate |
|---|---|---|
| All qualified (0/15/20%) | $1,200 | 15.0% |
| All ordinary (income rate) | $1,760 | 22.0% |
Same $8,000, $560 apart in tax, qualified dividends at 15% versus this filer's 22% ordinary bracket. That is why the holding-period rule behind "qualified" status is worth knowing: sell a stock too soon around its dividend and you forfeit the lower rate.
Questions
What makes a dividend qualified?
It must be paid by a US corporation (or a qualifying foreign one) and you must have held the stock more than 60 days in the 121-day window around the ex-dividend date. Your 1099-DIV reports qualified dividends in box 1b, a subset of the total ordinary dividends in box 1a.
What is taxed as an ordinary dividend?
Dividends that fail the qualified test: REIT dividends, most money-market and bond-fund distributions, dividends on stock held too briefly, and dividends in a margin account where the shares were lent out. They are taxed at your ordinary income rate, the same as interest.
Do I pay the 3.8% net investment income tax on dividends?
Yes, if your modified AGI is over $200,000 (single) or $250,000 (joint). It applies to both qualified and ordinary dividends, on top of the income tax. The calculator adds it when your income crosses the threshold.
Are dividends in my 401(k) or IRA taxed?
No, not while they stay in the account. Dividends inside a traditional retirement account are taxed only when you withdraw, as ordinary income; in a Roth they are never taxed if the rules are met. This calculator is for dividends in a taxable brokerage account.
Related tools
- Capital gains tax calculator qualified dividends share its rates
- Interest income tax calculator interest is ordinary
- Cost basis calculator reinvested dividends add to basis
Estimate for the 2026 tax year. Pick a state to add its tax, states tax dividends as ordinary income, with no 0/15/20% break. Not tax advice.