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Dividend tax calculator
An estimate of the federal, state and NIIT tax on your dividends, from 2026 rates.
Box 1a of your 1099-DIV.
Box 1b as a share of box 1a.
After deductions, with the dividends included.
More options
Empty uses the state table: 5.40%.
Box 7 of your 1099-DIV. The credit here stops at the US tax on those dividends.
Estimated tax
$1,072.50
- After-tax income
- $3,927.50
- Effective rate
- 21.45%
- Federal and NIIT
- $802.50
- State
- $270.00
At this income the 2026 federal tables give 15% on qualified dividends and 22% on ordinary dividends. The 3.8% NIIT applies too.
Where your dividends go
Federal and state rates are for tax year 2026, some state figures preliminary, without local taxes or surtaxes. They may have changed and may not fit you, so check them with the IRS and your state.
Tax breakdown
| Tax | Amount | Rate | On |
|---|---|---|---|
| Federal, qualified | $637.50 | 15% | $4,250.00 |
| Federal, ordinary | $165.00 | 22% | $750.00 |
| NIIT | $0.00 | 3.8% | $0.00 |
| State | $270.00 | 5.40% | $5,000.00 |
| Foreign tax credit | -$0.00 | - | $0.00 |
| Total | $1,072.50 | 21.45% | - |
How dividend tax works
The calculator splits your dividends into qualified and ordinary and finds the federal rate for each at your taxable income. It then adds NIIT and state tax, and takes off any foreign tax credit.
It uses one federal rate for each kind of dividend, with no split across brackets, and one set of state brackets for every filing status.
Tax = Qualified × rate + Ordinary × rate + NIIT + State tax - Foreign tax credit
An example
A single filer in New York with $75,000 of taxable income gets $5,000 of dividends, 85% qualified. Federal tax is $4,250 × 15% + $750 × 22% = $802.50. State tax is $5,000 × 5.4% = $270. That makes $1,072.50, or 21.45% of the dividends, which leaves $3,927.50.
Questions
How are dividends taxed in the United States?
At either qualified or ordinary rates. In tax year 2026, qualified dividends are taxed at 0%, 15% or 20% depending on income, and ordinary dividends at regular income tax rates of 10% to 37%. You may also owe state tax and NIIT.
What is the qualified dividend tax rate?
For a single filer in tax year 2026: 0% up to $49,450 of taxable income, 15% up to $545,500, and 20% above that. The thresholds depend on filing status and change each year, so check the current ones with the IRS.
What's the difference between qualified and ordinary dividends?
Qualified dividends meet IRS requirements on where the dividend comes from and how long you held the stock, and get the lower rates. Ordinary dividends do not, and are taxed as regular income. Box 1b of your 1099-DIV shows the qualified part of box 1a.
What is NIIT and when does it apply?
The Net Investment Income Tax is an extra 3.8% on investment income, dividends included. This calculator applies it above $200,000 for single filers and heads of household, $250,000 for married filing jointly and $125,000 for married filing separately. It compares those thresholds with your taxable income, where the IRS uses modified adjusted gross income.
Which states don't tax dividend income?
In tax year 2026, nine states have no tax on dividends: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Check with your own state, as this can change.
Related tools
For education only, not financial advice. Results depend on the numbers you enter.