Federal Dividend Tax
Estimate tax on qualified and ordinary dividend income under current federal tax law.
About Federal Dividend Tax
Dividend tax under current federal tax law: qualified dividends use the long-term capital-gain brackets (0/15/20%) while ordinary dividends follow the income brackets. Your broker usually labels them.
Formula
Tax
Tax = dividends × applicable rate
Worked example
With the default values below, Federal Dividend Tax returns Estimated Dividend Tax of $1,800.00. Change any input above and every figure here is recalculated in your browser.
Inputs used
- Dividend incomeminimum 0
- 12,000
- Total taxable incomeminimum 0
- 90,000
- Dividend typeone of Qualified, Ordinary
- Qualified
Results
- Estimated Dividend Tax
- $1,800.00
- Rate Applied
- 15.0%
- Type
- qualified dividend tax
Step by step
- 1Values used
- 2Tax
- 3Estimated Dividend Tax= 1,800.00
- 4Rate Applied= 15.0
- 5Type= qualified dividend tax
Assumptions and limits
- The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
- In particular, this calculator does not take inflation, fees or charges or compounding frequency into account.
- Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
- Estimate — excludes net investment income tax.
- This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.
How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.
Federal rules are not built in
Federal-specific rules are not built into this calculator. It uses a general calculation that is the same for every state. Check current figures with Federal’s official source before relying on the result.
Tax year: not verified · Source: none built in
Estimate — excludes net investment income tax.
Frequently Asked Questions
What makes a dividend qualified?
Generally 60+ days holding within the holding period and from a U.S. or qualifying foreign corporation.
How accurate is this estimate?
Rates are approximate reference values. Local rates, exemptions and rules can differ, so treat the output as a planning figure only.