What is the tax rate for dividends?

In Washington, the tax rate for dividends varies depending on the taxpayer’s personal income tax rate. Those with a tax rate of 0 - 8.5% have no state taxes on dividends. For those with a rate of 8.9 - 10.1%, the tax rate for dividends is 1.40%. For those with a rate of 10.2 - 11.9%, the tax rate for dividends is 2.85%. Lastly, for those with a tax rate of 12% or higher, the tax rate for dividends is 3.60%. The Washington State Department of Revenue collects taxes on taxable interest and dividends received by state residents. It’s important to note that not all dividends are taxable. Some investors can qualify for an exclusion on certain dividends, meaning they won’t be taxed. The exclusion applies to dividends received from a Washington-registered mutual fund and certain corporate stocks. Before filing taxes, it’s important to calculate your total taxable income to get an accurate picture of how much you’ll be asked to pay. The amount owed will depend on the tax rate for dividends, as well as the overall tax rate for the taxpayer. When filing taxes, be sure to take note of the tax rate for dividends and other applicable taxes.

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What is the tax rate for dividends?

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