What is the tax rate for dividends?

In California, dividends are taxed at the same tax rate as ordinary income. The rate can depend on how much money you make and the type of income you generate. Generally, for those who make more than $1 million annually, the highest rate is 13.3%. For those who make up to $55,950 per year, the rate is 9.3%. People who make more than that can expect to pay 10.3%. California has a progressive tax system, so those who make more will pay a higher rate than those who make less. In addition to the income tax rate, California also imposes an additional 1% tax on taxable income that exceeds $1 million if the taxpayer’s filing status is married filing separately or head of household. This 1% tax also applies to trusts and estates. If you receive qualified dividend income, you may be eligible for a 20% tax deduction. This deduction is only available to those whose modified adjusted gross income (MAGI) is less than $157,500 ($315,000 for married taxpayers filing jointly, or $157,500 for married filing separately). Overall, the tax rate for dividends varies depending on your income and filing status. Make sure you are familiar with the rules and regulations in California to ensure you pay the correct amount of taxes.

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What is the tax rate for dividends?

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