Dividend Tax Calculator

Dividend Tax Calculator (2026 federal estimate)

Figures as of October 3, 2026 (tax year 2026)

Estimate the federal income tax and the 3.8% Net Investment Income Tax on dividends in a taxable brokerage account, and compare it with the same dividends inside a Roth IRA. Federal only. Simplified.

Your 2026 taxable income after deductions, leaving out all dividends. If your deductions are bigger than your other income, enter 0. In that case the estimate may be too high, because your leftover deductions would lower the tax on your dividends.

Usually Form 1099-DIV, box 1b. Only count dividends on shares you held long enough to meet the holding period. Enter the rest as ordinary dividends.

Box 1a minus box 1b. Don’t enter all of box 1a here, or the qualified part is counted twice.

Leave blank to use taxable income plus dividends. Your real MAGI is usually higher, because it is figured before deductions. For most people it equals adjusted gross income (AGI). Enter it if you know it. If you leave it blank, the NIIT shown may be too low.

How this is figured

The 2026 Form 1040 instructions aren’t published yet (as of October 3, 2026). So this calculator follows the step structure of the 2025 Qualified Dividends and Capital Gain Tax Worksheet, with tax year 2026 amounts from Rev. Proc. 2025-32 plugged in.

Your qualified dividends are stacked on top of your other taxable income, and regular income tax is figured with the 2026 tax rate tables. After you calculate, open “Show the worksheet steps” to see each line.

This calculator leaves out

  • State and local income taxes.
  • The alternative minimum tax (AMT) and any other federal taxes besides regular income tax and the NIIT.
  • The foreign tax credit and all other tax credits. Amounts shown are before credits.
  • Holding-period checks. If you didn’t hold the shares long enough, enter those dividends as ordinary dividends.
  • Capital gains and capital gain distributions, including special types such as unrecaptured section 1250 gain, and the Schedule D Tax Worksheet. These can change your brackets and your NIIT.
  • Other investment income, such as interest and rents, and expenses that reduce net investment income on Form 8960. The calculator also doesn’t figure your MAGI for you.
  • Investment interest expense (Form 4952), foreign earned income (Form 2555), the kiddie tax (Forms 8615 and 8814), and estates and trusts.
  • Special dividend types: section 199A dividends, exempt-interest dividends, and nondividend distributions.
  • IRS Tax Table rounding. The IRS worksheet uses its Tax Table for any amount under $100,000 that it taxes at regular rates (including the part of your income that isn’t qualified dividends), while this calculator uses the exact 2026 tax rate tables, so your results may differ by a few dollars.
  • Withholding and estimated tax payments.
  • Roth IRA withdrawal ordering rules, the 10% additional tax, contribution limits, and income limits.
  • Future law changes. The 2026 amounts come from Rev. Proc. 2025-32, which reflects the tax law as in effect on October 9, 2025. Changes made after that aren’t included.

Sources (IRS)

This is an estimate for general information, not tax advice. Your actual tax is figured on the worksheets in the IRS instructions.