Investment Tax Calculator

Calculate tax across dividends, interest and capital gains at their separate rates.

Please note: A general estimate, not tax advice. Rates, bands, allowances and rules differ by country and change frequently. Enter the figures that apply to you and confirm with a qualified tax professional or your tax authority.

What the Investment Tax Calculator does

Different kinds of investment income are usually taxed at different rates — interest often as ordinary income, dividends and long-term gains frequently at lower preferential rates. This calculates each separately and applies any allowance where it saves the most.

Formula

Tax per source = (Income − Allowance applied) × That source's rate
Total tax = Sum across dividends, interest and capital gains
Blended rate = Total tax ÷ Total investment income

Inputs explained

Input	Unit	Required	Notes
Dividend income	selected currency	Optional	Accepts 0 or more.
Dividend tax rate	%	Yes	—
Interest income	selected currency	Optional	Accepts 0 or more.
Interest tax rate	%	Yes	Usually taxed as ordinary income.
Capital gains	selected currency	Optional	Accepts 0 or more.
Capital gains tax rate	%	Yes	—
Tax-free allowance	selected currency	Optional	Accepts 0 or more.
Currency	one of 10 options	Optional	—

How to use it

Choose Currency.
Enter Dividend tax rate, Interest tax rate and Capital gains tax rate.
Optionally add Dividend income, Interest income and Capital gains.
Select Calculate.

Worked example

$8,000 dividends at 15%, $3,000 interest at 24%, $12,000 gains at 15%, with a $2,000 allowance.

Dividends: 8000
Interest: 3000
Gains: 12000
Allowance: 2000

Allowance offsets interest first. Total tax about $3,240 on $23,000 — a blended rate of 14.1%.

Frequently asked questions

Why is interest taxed more heavily than dividends?

Many systems give preferential rates to dividends and long-term gains to encourage long-term investment. Interest is typically treated as ordinary income.

How do I reduce investment tax?

Use tax-sheltered accounts where available, hold assets long enough to qualify for long-term rates, and harvest losses to offset gains.

Method and sources

Method. Each income type — dividends, interest, gains — is taxed at its own rate against its own allowance, then totalled.

Assumptions

Each source is taxed separately at the rate entered, and allowances apply per source rather than across the whole.
All income falls in one tax year.

Limitations

Many systems tax investment income at rates that depend on total income, so a flat per-source rate is a simplification that breaks near band boundaries.
Tax-sheltered accounts, withholding at source, foreign tax credits and treaty rates all change the outcome and are not modelled.
No rate table ships with this calculator: you supply the rates, so the result follows whichever jurisdiction and year you enter. That means it can never go silently out of date — but it also cannot warn you if the figures you entered are.

Sources

Your own tax authority's published guidance for the relevant year — Varies by jurisdiction. The rate applying to each income type and the allowances available against them.