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Estimate the federal tax on your dividends using the 2026 brackets. We stack qualified dividends on top of your other income, the same way the IRS worksheet does.
Estimated federal tax on your dividends
You keep about $5,880 of $7,000 in dividends. Your qualified dividends top out in the 15% bracket.
Reinvested dividends are taxed the same way as dividends you take in cash. Each reinvestment also adds to your cost basis, so keep records to avoid paying tax twice when you sell.
Before April surprises you
Reinvested or not, dividends in a taxable account show up on your return. The good news is that many people pay less than they fear, and some pay nothing at all on qualified dividends.
Plug in your real numbers from last year's return to get a feel for where you land, then use the brackets below to plan for this year.
These thresholds apply to taxable income, after the standard deduction ($16,100 single, $32,200 married filing jointly).
| Rate | Single | Married filing jointly |
|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 |
| 15% | $49,451 – $545,500 | $98,901 – $613,700 |
| 20% | Over $545,500 | Over $613,700 |
Ordinary dividends are taxed like wages. These are the 2026 brackets, again applied to taxable income:
| Rate | Single: taxable income up to | Married filing jointly: up to |
|---|---|---|
| 10% | $12,400 | $24,800 |
| 12% | $50,400 | $100,800 |
| 22% | $105,700 | $211,400 |
| 24% | $201,775 | $403,550 |
| 32% | $256,225 | $512,450 |
| 35% | $640,600 | $768,700 |
| 37% | and above | and above |
Note: if you searched for 2025 rates, the structure is the same (0/15/20% for qualified dividends) but the 2025 income thresholds were lower because brackets are adjusted for inflation each year.
| Box | What it is | Enter it as |
|---|---|---|
| 1a | Total ordinary dividends (includes qualified) | — |
| 1b | Qualified dividends | Qualified dividends |
| 1a minus 1b | Non-qualified portion | Ordinary dividends |
| 2a | Capital gain distributions from funds | Taxed at the 0/15/20% rates, like qualified dividends |
| 3 | Nondividend distributions (return of capital) | Not taxed now; lowers your cost basis |
| 5 | Section 199A dividends (mostly REITs) | Ordinary, but may qualify for a 20% deduction |
| 7 | Foreign tax paid | Possible foreign tax credit |
The full explanation of each box, with examples, is in our guide to how dividends are taxed.
Qualified dividends sit on top of your other taxable income. If your wages take you to just below the 0% threshold, the first slice of dividends is tax-free and the rest is taxed at 15%. That's why the calculator asks for your other income rather than just a bracket. It also means a raise at work can increase the tax on dividends you already receive.
Above $200,000 of modified adjusted gross income ($250,000 for joint filers), an extra 3.8% applies to the smaller of your net investment income and the amount you are over the threshold. These thresholds are set in law and not adjusted for inflation, so more households cross them each year.
Sources: IRS inflation adjustments for tax year 2026 (Rev. Proc. 2025-32) and IRC §1411. Read our full guide to dividend taxes in 2026.
0%, 15% or 20%, depending on your taxable income. For 2026, single filers pay 0% on qualified dividends that fall within taxable income up to $49,450 and 15% up to $545,500. For married couples filing jointly, the thresholds are $98,900 and $613,700.
Ordinary (non-qualified) dividends are taxed at your regular income tax rate, from 10% up to 37%. Most REIT distributions, money market fund dividends and dividends on shares you held for too short a time fall into this group.
Generally, it must be paid by a US corporation or a qualifying foreign one, and you must have held the shares for more than 60 days during the 121-day period that starts 60 days before the ex-dividend date. Your broker reports the qualified portion in box 1b of Form 1099-DIV.
Yes, in a taxable account. Reinvested dividends are taxable in the year paid. Each reinvestment also raises your cost basis, which reduces capital gains tax when you eventually sell.
Most states tax dividends as ordinary income; a few have no income tax. This calculator covers federal tax only, so add your state rate separately.
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