State Tax on Dividends Calculator (2026)
A retiree can collect $65,550 (single) or $131,100 (married filing jointly) of qualified dividends in 2026 and owe $0 in federal income tax. Compare what you owe at the state level across the 25 most populous states.
Compare Your State Bill at the Federal 0% Ceiling
Select filing status and two states to compare the 2026 state income tax on $65,550 of qualified dividends (age 55, federal tax = $0).
Why the Federal 0% Dividend Bracket Stops at the State Line
At the federal level, qualified dividends enjoy a 0% tax rate up to $49,450 of taxable income for single filers ($98,900 for married couples filing jointly) in 2026. Combined with the $16,100 single ($32,200 joint) standard deduction, a retiree whose only income is qualified dividends can collect $65,550 single or $131,100 married free of federal tax.
Most states do not offer a separate 0% rate for qualified dividends. Instead, they tax dividend distributions as ordinary income under their own state rate schedules and deduction rules. As a result, a single retiree owing $0 to the IRS still faces a 2026 state tax bill ranging from $0 in Florida, Texas, Tennessee, and Washington to $3,100 in Illinois (and $4,070 to $4,690 in Maryland once mandatory county income tax is included).
2026 Baseline Parameters Modeled
- Income modeled: $65,550 of qualified dividends for a single filer; $131,100 for a married couple filing jointly (the exact 2026 federal $0 tax ceiling).
- Filer profile: Full-year resident, age 55, no dependents, taking the state standard deduction. Age 55 measures the base tax before senior exemptions (which begin at age 62 or 65 in several states).
- State rules verified: Calculated directly from each state's 2026 rate schedules, withholding tables, revenue notices, and enacted 2026 legislation (including Georgia HB 463, South Carolina Act 110, and Arizona HB 4168). Read the full 25-state methodology and analysis.
Frequently Asked Questions
Why is California's dividend tax lower than Illinois, Pennsylvania, or Ohio?
California is famous for its 13.3% top bracket on high earners, but its bottom brackets are steeply progressive—1%, 2%, and 4% on the first tiers of taxable income. On $65,550 of dividends, a single filer in California owes $1,909 (2.91% of income), ranking 17th out of the 21 taxing states and well below flat-rate states like Illinois ($3,100 at 4.95%) or Pennsylvania ($2,012 at 3.07% with zero standard deduction).
Which states charge a marriage penalty on dividend income?
In nine of the 21 taxing states, a married couple earning $131,100 pays more than two single filers earning $65,550 each. The largest marriage penalties occur in Wisconsin (+$1,004), where the sliding-scale standard deduction phases out faster for couples, and South Carolina (+$967), where the $30,000 bracket threshold is not doubled for joint returns.
Do any states exempt dividend income for seniors age 62 or 65+?
Yes. For example, Georgia exempts up to $65,000 per person of retirement income (including dividends) starting at age 65, which drops Georgia's tax on this portfolio to $0. New Jersey also offers a broad retirement income exclusion for filers age 62+ who have $3,000 or less of earned income.
How do Roth conversions or Social Security change the calculation?
Adding a Roth conversion or Social Security benefits changes both your federal and state tax bills. See our Roth conversion & dividend bump analysis (or try the Roth Conversion Calculator) and our 0% dividend bracket & Social Security torpedo guide.