🇺🇸 US 0–20% 🇬🇧 UK £500 allowance 🇦🇺 AU franking credits 🇨🇦 CA gross-up

Dividend Calculator

Calculate your dividend income and after-tax yield. Dividend tax rules vary dramatically by country — the same investment can generate very different after-tax income depending on where you live.

Quick Answer
Annual Dividend Income = Investment × Dividend Yield. After-tax income depends on your country's dividend tax rules.
💡 Qualified dividends taxed at 0%, 15%, or 20% depending on income. Non-qualified at ordinary income rates.

Dividend Tax Withholding Around the World

When you invest in foreign stocks, many countries withhold tax on dividends before they reach you. Tax treaties can reduce these rates:

Country Withholding Tax (Standard) Treaty Rate (US) Tax-Free Account
🇺🇸 United States 30%N/A401k, Roth IRA
🇬🇧 United Kingdom 0%0%ISA
🇩🇪 Germany 26.375%15%None standard
🇯🇵 Japan 20.315%10%NISA
🇳🇱 Netherlands 15%15%None standard
🇨🇦 Canada 25%15%TFSA

Frequently Asked Questions

How are dividends taxed in the US?

In the US, qualified dividends (from US companies held long enough) are taxed at 0%, 15%, or 20% depending on your income. Non-qualified dividends are taxed as ordinary income at rates up to 37%. Most S&P 500 dividends are qualified. Dividends inside a Roth IRA or 401(k) are never taxed.

What is the UK dividend allowance?

The UK dividend allowance was reduced to £500 in 2024 (from £2,000 in 2023). Above this allowance, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate), or 39.35% (additional rate). UK ISA dividends are completely tax-free — making ISAs the most efficient wrapper for dividend investing in the UK.

What are Australian franking credits?

Australian companies pay 30% corporate tax before distributing dividends. Franking credits allow shareholders to offset this tax against their personal income tax. A fully franked dividend effectively gives you a 30% tax credit, which is refundable if your marginal rate is lower than 30%. This makes Australian dividend investing particularly attractive for lower-income retirees.