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Dividend Tax Calculator
Estimate the federal tax on your qualified or ordinary dividends and see how much you keep. Enter your numbers and press Calculate.
Written by TopicDrill Editorial Team·Updated June 2026
Net dividend vs tax
You keep Tax
$4,250.00
$750.00
Of $5,000.00 in dividends, you keep $4,250.00 after a 15.0% tax.
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How dividend tax works
The tax you owe on dividends depends on whether they are qualified or ordinary. Qualified dividends use the long-term capital gains brackets, so the calculator checks your taxable income and filing status to pick the 0%, 15% or 20% rate. Ordinary dividends are taxed at your regular marginal rate, which you enter directly.
The bar chart splits your dividend into the part you keep and the part that goes to tax, making the bite easy to see at a glance.
A quick example
A single filer with $80,000 of taxable income receives $5,000 in qualified dividends. That income sits in the 15% bracket, so the tax is $750 and you keep $4,250. If the same dividends were ordinary and taxed at a 22% marginal rate, the tax would be $1,100 and you would keep $3,900.
Things to keep in mind
Holding dividend payers in a retirement account can defer or avoid this tax entirely. Rates and brackets change each year, so confirm current figures with the Internal Revenue Service. To project the dividends themselves, try our dividend calculator.
Frequently asked questions
How are qualified dividends taxed?
Qualified dividends are taxed at the long-term capital gains rates of 0%, 15% or 20%, based on your taxable income and filing status. To qualify, the payer must be a US or qualifying foreign company and you must hold the shares for a minimum period around the ex-dividend date.
How are ordinary dividends taxed?
Ordinary, or non-qualified, dividends are taxed at your regular marginal income tax rate, the same as wages. They include dividends from REITs, money market funds and shares held for too short a period to qualify.
What is the difference between qualified and ordinary dividends?
It comes down to the tax rate. Qualified dividends get the lower capital gains rates, while ordinary dividends are taxed as regular income. Your broker reports both figures on Form 1099-DIV, so you can see how much of your total falls into each bucket.
Does this include state tax or the net investment income tax?
No. This calculator estimates federal income tax only. Many states tax dividends as well, and high earners may owe an additional 3.8% net investment income tax. Treat the result as a starting point and confirm with a tax professional.
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