Finance Tools
Qualified vs Ordinary Dividend Tax Calculator
Compare estimated taxes on qualified vs ordinary dividends and see the difference in take-home dividend income using two tax rates.
Qualified vs Ordinary Dividend Tax Calculator
Compare estimated taxes on qualified vs ordinary (non-qualified) dividends. Enter your dividend amount and two estimated tax rates to see the difference in take-home dividend income.
Results
Qualified dividend scenario:
Estimated Tax: $300
Take-Home Dividends: $1,700
Ordinary dividend scenario:
Estimated Tax: $600
Take-Home Dividends: $1,400
Estimated Tax Savings (Qualified vs Ordinary): $300
Difference in Take-Home Dividends: $300
Rates used: qualified 15.00%, ordinary 30.00%. This tool provides an estimate for planning.
How to use
- Enter your total dividend amount.
- Enter an estimated qualified dividend tax rate.
- Enter an estimated ordinary dividend tax rate.
- Compare tax and take-home amounts under both scenarios.
FAQ
What are qualified dividends?
Qualified dividends are dividends that meet certain requirements and may be taxed at preferential rates in some tax systems (rules vary by country).
Are all dividends qualified?
No. Some dividends may be treated as ordinary (non-qualified) and taxed at higher rates. Check your broker’s tax documents or local tax guidance.
Can I use this outside the US?
Yes. This calculator simply applies the two rates you enter. Use it as a planning estimate and confirm the correct classification and rates for your jurisdiction.
How to use this qualified vs ordinary dividend tax calculator
- Enter your total dividend amount.
- Enter a qualified dividend tax rate (estimated).
- Enter an ordinary dividend tax rate (estimated).
- Compare taxes and take-home dividend income under both cases.
Example
If dividends are $2,000, qualified rate is 15%, and ordinary rate is 30%, qualified dividends result in lower tax and higher take-home income.
- Qualified tax = $2,000 × 0.15 = $300
- Qualified take-home = $2,000 − $300 = $1,700
- Ordinary tax = $2,000 × 0.30 = $600
- Ordinary take-home = $2,000 − $600 = $1,400
- Difference in take-home = $300
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