What is the tax rate on qualified dividends?

Qualified dividend tax rates in 2024: 0% if taxable income is below $47,025 (single) or $94,050 (married filing jointly), 15% if income is between those thresholds and $518,900 (single) or $583,750 (married), and 20% above those thresholds. High earners also pay 3.8% NIIT on top of these rates. The Tax Calculator tab automatically determines your rate from total taxable income and filing status.

How is REIT dividend income taxed?

REIT distributions are typically classified as ordinary income and taxed at your full marginal income tax rate (10–37%), not at the lower qualified dividend rate. A small portion may be qualified dividends or return of capital depending on the REIT. This makes account placement especially important for REITs — holding them in a Roth IRA or Traditional IRA eliminates the annual ordinary income tax entirely.

What is the Foreign Tax Credit for dividends?

The Foreign Tax Credit (Form 1116) allows US taxpayers to offset US federal tax dollar-for-dollar by the amount of tax withheld by a foreign country on dividend income. For example, if Canada withholds 15% ($750) on a $5,000 dividend and your US qualified dividend rate is 15% ($750), the FTC eliminates your US federal tax entirely — you pay only 15% once, not twice. The Foreign tab calculates the FTC and effective combined rate for 30+ countries.

Which account type is best for dividend stocks?

For qualified dividends (most US stocks), a taxable brokerage is often adequate because the 15% rate is already low. For REITs, BDCs, and ordinary-income dividends, a Roth IRA is best — eliminating the tax entirely. A Traditional IRA defers the tax to withdrawal. The Account Type tab compares all three for your specific dividend type, income level, and holding period to show which produces the most net income over time.

What is the difference between qualified and ordinary dividends?

Qualified dividends are taxed at the lower capital gains rates (0%, 15%, or 20%) and come from US corporations or qualifying foreign companies when you've held the stock for more than 60 days in the 121-day window around the ex-dividend date. Ordinary (non-qualified) dividends are taxed at your full marginal income tax rate (10–37%). The difference can be 10–20+ percentage points — holding a position for 60+ days to achieve qualified status is one of the simplest tax-savings moves for dividend investors.

Is this dividend tax calculator free?

Yes. The Dividend Tax Calculator Pro on StockToolHub is completely free with no registration, account, or subscription required. All five tabs — Tax Calculator, Account Type, Foreign Withholding, Compare, and Annual Planner — are fully accessible.

Dividend Tax Calculator Pro — Qualified, Ordinary, REIT, Foreign & Account Optimizer

Dividend Income

Gross Annual Dividend Income

Supports: 12000 · 12,000 · 12K · 1.5M

Dividend Type

Tax Rates

Filing Status

Total Taxable Income (incl. dividends)

For automatic qualified rate lookup — supports 85000 · 85,000 · 85K

Federal Rate override

State Tax Rate

NIIT

Withholding

Net Annual Dividend Income

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Enter gross income and tax rates

Gross Annual Income

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Total Tax Paid

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Effective Tax Rate

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Net Monthly Income

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Federal Tax

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State + NIIT + Withholding

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Income Breakdown — Net vs Tax Layers

Compare Tax Scenarios

Scenario Name	Gross Income ($)	Federal Rate (%)	State Rate (%)	NIIT (%)	Withholding (%)	Net Income	Eff. Rate	Net/Month

Best Net Income

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Scenarios

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Best Net

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Worst Net

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Max Savings

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Net Income Comparison by Scenario

Annual Dividend Tax Planner

Stock / Holding	Gross Income ($)	Type	Fed Rate (%)	State (%)	Withhold (%)	Tax Paid	Net Income

Total Net Dividend Income

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Total Gross Income

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Total Tax Paid

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Avg Effective Rate

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Holdings

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Tax vs Net Income by Holding

What each tab calculates

Tax Calculator

Calculate net dividend income after federal, state, NIIT, and withholding taxes for any dividend type. Supports qualified, ordinary, REIT, foreign, and mixed dividends. Auto-detects your qualified rate from taxable income and filing status, with a smart tax optimization tip.

Account Type

Compare the tax impact of holding dividend-paying stocks in a Taxable Brokerage, Traditional IRA, or Roth IRA for your specific dividend type. Shows annual net income and cumulative 20-year income compounding across all three account types in a single view.

Foreign Withholding

Look up foreign dividend withholding rates for 30+ countries with treaty-reduced rates. Calculates income after withholding, estimates US Foreign Tax Credit, models combined effective tax rate, and shows a waterfall chart from gross to net income.

Compare

Run up to 5 side-by-side tax scenarios with different income amounts, filing situations, or account types. Each row auto-calculates net income and effective tax rate. A bar chart ranks scenarios from best to worst net income instantly.

Annual Planner

Enter each dividend-paying holding separately with its own type and tax rates. The calculator totals gross income, total tax paid, net income, and average effective rate across all holdings — your complete annual dividend tax picture in one place.