Model dividend taxes with smart splits and credits. Explore withholding, foreign tax, and surtaxes. Get clear totals, and export them instantly today.
| Scenario | Dividends | Qualified % | Ordinary % | Qualified % Rate | Surtax % | Foreign Withheld | Withholding |
|---|---|---|---|---|---|---|---|
| Balanced portfolio | 5,000 | 60 | 22 | 15 | 3.8 | 120 | 250 |
| Mostly qualified | 8,000 | 90 | 24 | 15 | 0 | 0 | 0 |
| International heavy | 6,500 | 40 | 32 | 15 | 3.8 | 260 | 300 |
This calculator separates dividends into qualified and ordinary buckets, then applies distinct rates to each bucket. In the example table, a 5,000 gross dividend with 60% qualified produces 3,000 qualified and 2,000 ordinary. That split is the first driver of federal outcomes and helps explain why two investors with the same cash dividend can owe different tax.
Federal tax is computed as ordinary amount × ordinary rate plus qualified amount × qualified rate. Optional surtax applies to the taxable dividend base, scaling with dividends after any effective expense reduction. State and local rates apply on the same base, so a 5% state rate on an 8,000 base adds 400, sometimes rivaling the qualified-versus-ordinary difference.
International funds often withhold tax at source. Enter foreign-sourced dividend percent and foreign tax withheld to estimate a foreign tax credit. With the attributable limit enabled, the credit is capped to the federal tax share tied to foreign dividends, preventing oversized offsets. This is useful when withheld tax is high relative to your effective federal rate.
Dividend withholding may come from brokerage backup withholding or foreign withholding you treat as paid. The calculator compares total tax after credits to withholding and returns a net amount due or an estimated refund. Use that net figure to plan quarterly payments, avoid penalties, and size a reserve for filing season.
Dividend taxation is sensitive to rate assumptions and dividend character, so scenario testing matters. Adjust qualified percentage, change ordinary and qualified rates, and toggle surtax to see changes in the KPI cards and Plotly charts. Export CSV for spreadsheet comparison and export PDF for sharing. A practice is to save base, conservative, and optimistic scenarios.
Effective rate equals total tax after credits divided by taxable dividends. It summarizes how federal, surtax, state, local, and credits combine into one measure you can compare across portfolios. This tool is for planning; actual results depend on residency rules, holding-period tests, treaty rates, deductions, and how your tax authority treats foreign credits.
Enter the percentage shown on your broker’s tax summary. Qualified dividends generally meet holding-period and issuer requirements, but classification depends on your statements and local rules.
If enabled, the surtax rate applies to the taxable dividend base after any effective expense reduction. It is a planning approximation and may differ from jurisdiction-specific thresholds.
The tool uses foreign-sourced percentage and foreign tax withheld. If the limit option is enabled, the credit is capped to the federal tax attributable to foreign dividends.
Yes. Add state and local rates to model layered taxation. These rates apply to the same taxable dividend base, giving a combined total alongside federal and surtax components.
Net due equals total tax after credits minus withholding you entered. A negative value indicates an estimated refund. Use it for cash-flow planning and estimated payments.
No. It is an educational estimator. Actual filing depends on your residency, brackets, forms, treaty rules, and broker reporting. Confirm inputs with your official tax documents.
Important Note: All the Calculators listed in this site are for educational purpose only and we do not guarentee the accuracy of results. Please do consult with other sources as well.