For federal tax there are different income tax rates for different types of income. There is one set of rates for ordinary income, and a different set of lower rates for qualified dividends and long-term capital gains. Self-employment income is taxed at ordinary income rates, but is subject to self-employment tax in addition to income tax.
Here's a short summary of what rates apply to the specific types of income that you asked about.
Ordinary income rates apply to:
- Self-employment income
- Non-qualified dividends
- Short-term capital gains
The lower rates for qualified dividends and long-term capital gains apply to:
- Qualified dividends
- Long-term capital gains
Self-employment tax, in addition to ordinary income tax, applies to self-employment income.
For state tax, it depends on what state you are in. Each state has its own tax rates. I think that most states tax all income at the same rates. They do not have different rates for different types of income like the federal tax does.
TurboTax does figure this all out automatically.
