The tax rates for ordinary dividends (typically those that are paid out from most common or preferred stocks) are the same as standard federal income tax rates, or 10% to 37% for the tax years 2021 and 2022. Investors pay taxes on ordinary dividends at the same rates they pay on regular income, such as salary or wages.
Qualified dividends are taxed at the same rates as the capital gains tax rate; these rates are lower than ordinary income tax rates
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