How much tax will I owe on dividends in 2025?
Estimate tax on qualified and ordinary dividends for 2025 or 2026. Enter income and dividend totals to compare IRS qualified dividend rates versus ordinary rates and see an estimated effective rate for planning withholding and quarterly payments.
How this calculation works
- Separates ordinary and qualified dividends.
- Applies ordinary income rates to non-qualified dividends.
- Applies capital gains rates to qualified dividends based on income.
Common mistakes and caveats
- Broker classifications determine whether dividends are qualified.
- State dividend taxation is not included.
FAQ
Are qualified dividends taxed at capital gains rates?
Yes. Qualified dividends generally receive long-term capital gains rates.
TaxGuide Pro provides free state and federal tax calculators for individuals, freelancers, and small businesses.