Dividends (2025)

Qualified dividends receive long-term capital gains rates (0/15/20%); ordinary dividends are taxed at ordinary income rates.

Qualified Dividend Requirements

To be qualified, dividends must be from a U.S. corporation or qualified foreign corp and you must meet holding period requirements for the underlying stock.

Interaction with NIIT

High MAGI may trigger the 3.8% Net Investment Income Tax on dividends. Use the NIIT calculator for estimates.

Planning Tips

  • Use tax-advantaged accounts for ordinary dividends
  • Harvest qualified dividends in years with lower taxable income
  • Consider tax-loss harvesting to offset dividend income