What the worksheet does
Qualified dividends and long-term capital gains are taxed at 0%, 15% or 20% instead of your ordinary income tax rates. The Qualified Dividends and Capital Gain Tax Worksheet in the Form 1040 instructions (for line 16) works out how much falls into each rate. It stacks your ordinary income first, then fills the 0% band, then the 15% band, and taxes the rest at 20%. This calculator follows the worksheet's 25 lines exactly and shows every one.
The 0%, 15% and 20% breakpoints
| Filing status | 0% up to (2025) | 15% up to (2025) | 0% up to (2026) | 15% up to (2026) |
|---|---|---|---|---|
| Single | $48,350 | $533,400 | $49,450 | $545,500 |
| Married filing jointly | $96,700 | $600,050 | $98,900 | $613,700 |
| Married filing separately | $48,350 | $300,000 | $49,450 | $306,850 |
| Head of household | $64,750 | $566,700 | $66,200 | $579,600 |
These are taxable-income amounts (line 6 and line 13 of the worksheet). Taxable income above the 15% amount is taxed at 20%.
How it's calculated
0% part = room left under the 0% breakpoint after ordinary income
15% part = room left under the 15% breakpoint · 20% part = the rest
Tax = ordinary tax on line 5 + 15% part × 15% + 20% part × 20%, but never more than regular tax on all income
On lines 22 and 24 the IRS tells you to use the Tax Table when the amount is under $100,000 and the Tax Computation Worksheet otherwise. The Tax Table taxes the middle of each $50 row (narrower rows at the very bottom) and rounds to the dollar, so the default here matches the return. Choose "exact tax rate schedule" to see the unrounded figure.
Worked example
A single filer in 2026 has $100,000 of taxable income, including $10,000 of qualified dividends and $20,000 of net capital gain. Ordinary income (line 5) is $70,000, which is already above the $49,450 0% breakpoint, so nothing is taxed at 0%. All $30,000 fits under the $545,500 15% breakpoint, so line 18 is $4,500. Tax on $70,000 from the Tax Table is $10,118 (the $70,000–$70,050 row, taxed at its $70,025 middle). Line 23 is $4,500 + $10,118 = $14,618, below the regular tax on $100,000 of $16,712, so the tax is $14,618.
Limitations
- If you have 28% collectibles gain or unrecaptured section 1250 gain (Schedule D lines 18 or 19), you need the Schedule D Tax Worksheet instead.
- Foreign earned income exclusion users need the Foreign Earned Income Tax Worksheet first.
- The 2026 Tax Table isn't published until the 2026 Form 1040 instructions come out; the same row method is applied to the 2026 rates.
- The 3.8% net investment income tax is separate and isn't included.
Sources
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) – §4.01 2026 brackets, §4.03 0%/15% breakpoints
- IRS Rev. Proc. 2024-40 (2025 inflation adjustments) – §2.01 2025 brackets, §2.03 breakpoints
- IRS Topic 409, Capital gains and losses – 2025 breakpoints
- Instructions for Form 1040 (Line 16 and the Tax Table) – the worksheet and when to use the Tax Table