Dividend investing in the United States
Qualified versus ordinary dividends, the 2026 0%/15%/20% bands, the holding period, the 3.8% net investment income tax and what reinvestment means for your basis.
The US rules that matter most
- Qualified dividends get capital-gains rates. 0%, 15% or 20% for 2026, stacked on top of your other taxable income. Bands and examples.
- The holding period decides qualification. More than 60 days in the 121-day window around the ex-date for common shares. Count it.
- NIIT adds 3.8% at higher incomes. Above $200,000 single or $250,000 married filing jointly, not indexed. NIIT.
- Reinvested dividends are still taxable. They also add to your cost basis. Reinvestment and basis.
US tax pages
US qualified dividends: 2026 tax rates and brackets
Qualified dividends are taxed at 0%, 15% or 20% in the US, depending on taxable income. See the 2026 breakpoints for every filing status and how stacking works.
US dividend taxThe qualified dividend holding period, with a calendar example
To be a qualified dividend, common stock must be held more than 60 days in the 121-day window around the ex-dividend date. See how to count the days.
US dividend taxThe 3.8% net investment income tax on dividends
The 3.8% net investment income tax applies to dividends when MAGI exceeds $200,000 single or $250,000 joint. See the lesser-of rule in a 2026 example.
Cross-border dividendsThe Canada–US tax treaty and dividends
The Canada–US tax treaty generally cuts dividend withholding to 15%, or 5% for 10% corporate owners, and exempts retirement plans. See how it works both ways.
Dividend reinvestmentDRIPs and adjusted cost base: how reinvested dividends are taxed
Reinvested DRIP dividends are taxable in the year paid and raise your adjusted cost base. See a worked average-cost table and the US rules too.
Calculators for US readers
After-tax dividend comparator
Canadian province and account, or US filing status: what you keep.
CalculatorEx-dividend date calculator (T+1)
From the record date to the ex-date and the last day to buy.
CalculatorDRIP compounding calculator
Reinvest versus take the cash, with growth, contributions and tax drag.
CalculatorDividend income calculator
Income per payment, month and year from your own share count and dividend.
CalculatorPayout ratio health checker
Earnings and cash-flow payout, coverage and debt, from numbers you enter.
CalculatorDividend growth calculator
Growth rate between two dividends, doubling time and a projection.
Education, not advice. This site does not recommend, rate or rank any security and does not know your full situation. Check tax details with the CRA or IRS, or a qualified professional. Read the disclaimer.