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Dividend tax rate is the same as capital gains rate which is what you pay when you sell your stock if you've held it for a year.
by colinmhayes 5y ago
Dividend tax rate is the same as capital gains rate which is what you pay when you sell your stock if you've held it for a year.
- bananabreakfast 5y agoThat's not true at all. Dividends are taxed as regular income, unless they're qualified dividends then they have their own rate.
- rileymat2 5y agoIf you hold the stock for more than a year it is part of the qualification, and with some exceptions most will be.
- hnfong 5y agoAFAIK, the situation is totally different for non-US tax residents (for those without a tax treaty with US anyway). Dividends are taxed at a flat 30% rate. Capital gains are not taxed by the US. At least that's my situation. Companies that pay heavy dividends are a substantially less attractive buy in my case.