Qualified Dividend Tax Rates by Filing Status
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 2025, the 0% rate applies to single filers with taxable income below $48,350. Most U.S. stock dividends in taxable accounts qualify; REIT and money market dividends typically do not.
2025 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 $48,350 | $48,351-$533,400 | Over $533,400 |
| Married Filing Jointly | Up to $96,700 | $96,701-$600,050 | Over $600,050 |
| Head of Household | Up to $64,750 | $64,751-$566,700 | Over $566,700 |
| Married Filing Separately | Up to $48,350 | $48,351-$300,000 | Over $300,000 |
Source: IRS: Topic No. 404 Dividends. Last verified: September 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 2025). 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.