Dividends

Qualified dividends are taxed at the same rates as long-term capital gains—15% for investors in the 25%, 28%, 33%, and 35% tax brackets. Investors in the bottom two income tax brackets will pay no tax on dividends through 2017. The top rate for dividends is 20%. The 20% tax rate will apply to the extent that a taxpayer's income exceeds the thresholds set for the 39.6% income tax bracket: $418,400 for single filers; $444,450 for heads of households, and $470,700 for married couples filing jointly.