What is the tax rate for dividends?

The tax rate for dividends in Arizona depends on the amount earned. Generally, the taxes are based on the following three rates: 0%, 4.54%, and 5.04%. The 0% rate applies if the amount of taxable dividends is under $2,500. It also applies if the dividends involve qualified long-term capital gains. The 4.54% rate applies to dividends that generate between $2,500 and $50,000, depending on the taxpayer’s income level. The 5.04% rate applies to dividends that generate more than $50,000 of taxable income, regardless of the taxpayer’s income level. Additionally, there are special rules that apply to dividends paid by Arizona corporations. These dividends are exempt from taxation under the state’s income tax laws. The Internal Revenue Service is the ultimate authority on taxes and sets the federal tax rates for dividends. This rate can be different from the state rate. To determine the proper rate, consult with a qualified tax attorney or CPA.

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What is the tax rate for dividends?

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