Dividend Tax Calculator
Estimate federal, NIIT, and state taxes on your dividend income. This Dividend Tax Calculator separates ordinary vs qualified dividends, applies the 2025 tax brackets based on filing status, and shows how much income you keep after taxes. Use the dividend tax calculator to plan quarterly estimated payments or optimize tax-efficient accounts.
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Dividend Tax Inputs
Dividends that do not meet holding-period requirements.
Dividends eligible for long-term capital gains rates.
Enter taxable wages, interest, and other income after deductions.
Set to zero if you live in a state without income tax.
Dividend Tax Results
Break down every tax layer that applies to your dividends.
Federal Tax on Ordinary Dividends
$550
Federal Tax on Qualified Dividends
$525
NIIT (3.8%)
$0.00
State Dividend Tax
$300
Total Dividend Tax
$1,375
Effective Dividend Tax Rate
22.92%
You keep $4,625 of $6,000 in dividends after taxes.
Dividend Tax Breakdown
See which tax layers consume the most dividend income so you can prioritize tax-efficient accounts or qualified dividend strategies.
After-Tax Dividend Income
Use this view to estimate quarterly tax payments or choose how much income to shelter in tax-advantaged accounts.
Tips for Lowering Dividend Taxes
- Favor qualified dividends: Holding stocks for 61+ days around the ex-dividend date usually qualifies for lower rates.
- Maximize tax-advantaged accounts: Place high-yield REITs or non-qualified dividends inside IRAs and 401(k)s.
- Watch NIIT thresholds: The 3.8% Net Investment Income Tax kicks in at $200k (single) or $250k (married filing jointly).
- Coordinate with capital gains: Long-term capital losses can offset qualified dividend income in the 15% and 20% brackets.
Pair this Dividend Tax Calculator with the Dividend Reinvestment Calculator to see how reinvesting after-tax dividends accelerates compounding toward your goals.
Disclaimer: This calculator is for educational and illustrative purposes only. Results are estimates and may not reflect actual outcomes. Investing Point does not guarantee the accuracy of these calculations and is not responsible for any decisions made based on this tool.
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