Capital Gains & Capital Gains Tax-Tax Rates on Qualified Dividends

What are the tax rates of Qualified Dividends and Qualified Dividend Income?

Under the Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA), beginning in 2003 and continuing through 2008, “qualified dividend income” or qualified dividends received by an individual is now taxed at the same tax rates that apply to long-term capital gains.

Tax brackets	Tax rates on Qualified Dividends
10%	5% (zero in 2008)
15%	5% (zero in 2008)
25%, 28%, 33% and 35%	15%

Note: JGTRRA is scheduled to sunset in 2008. Pre JGTRRA rates will return in 2009.

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