Direct Answer
Qualified dividends are taxed at the same preferential rates as long-term capital gains: 0%, 15%, or 20% depending on taxable income. For 2026, the 0% rate applies to single filers with taxable income up to $49,450 and married joint filers up to $98,900, up from $48,350 and $96,700 in 2025. Most U.S. stock dividends in taxable accounts qualify; REIT and money market dividends typically do not.
Qualified Dividend Tax Rates by Filing Status
2026 qualified dividend rates by filing status
These thresholds are identical to the long-term capital gains rate thresholds and use taxable income (after the standard or itemized deduction).
| Filing Status | 0% Rate Threshold | 15% Rate Range | 20% Rate Begins |
|---|---|---|---|
| Single | Up to $49,450 | $49,451-$545,500 | Over $545,500 |
| Married Filing Jointly | Up to $98,900 | $98,901-$613,700 | Over $613,700 |
| Head of Household | Up to $66,200 | $66,201-$579,600 | Over $579,600 |
| Married Filing Separately | Up to $49,450 | $49,451-$306,850 | Over $306,850 |
| Estates and Trusts | Up to $3,300 | $3,301-$16,250 | Over $16,250 |
Source: IRS: Rev. Proc. 2025-32 (section 4.03) and IRS: Topic No. 404 Dividends. Last verified: October 2026. Verify current-year figures at IRS.gov before making decisions.
Ordinary vs. qualified dividend distinction
Ordinary dividends are taxed at regular income tax rates (up to 37% in 2026). Qualified dividends are taxed at the lower capital gains rates shown above. Most broker confirmations and 1099-DIV forms separate these two categories. When reviewing total return, knowing the tax treatment of dividend income helps compare the after-tax yield of different investments.
Frequently asked questions
What makes a dividend qualified?
A dividend is qualified if it is paid by a U.S. corporation or qualifying foreign corporation and you have held the stock for more than 60 days during the 121-day period surrounding the ex-dividend date. Most dividends from U.S. stocks in a taxable brokerage account are qualified. Dividends from REITs, money market funds, and certain foreign stocks are typically ordinary (non-qualified).
How do I find out if my dividends are qualified?
Your brokerage will report qualified and ordinary dividends separately on Form 1099-DIV: Box 1a shows total ordinary dividends, Box 1b shows the qualified portion. Holding periods reset if you sell and repurchase within the wash-sale window.
Are REIT dividends qualified?
Most REIT dividends are not qualified because REITs pay out rental income, which is ordinary income. However, REIT dividends do qualify for the 20% pass-through income deduction under IRC Section 199A for non-corporate shareholders, effectively reducing the tax rate. The deduction is limited by income thresholds and other rules.
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If you reference this table in your own work, use the following citation format and add the date you accessed it:
Swoopr Editorial Team. (2026). Qualified Dividend Tax Rates by Filing Status. Swoopr Investment. https://www.getswoopr.com/tables/retirement/qualified-dividend-tax-rates/
Check the figures against the primary sources listed under References before you rely on or republish them; the series they come from are revised.