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Latest revision as of 22:03, 9 October 2026

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In U.S. the tax rate on eligible dividends and long term capital gains is 0% for people in the 10% and 15% income tax brackets in 2008, 2009, and last year. Other will pay will be taxed at the taxpayer's ordinary income tax rate. That generally 20%. For kontol example, most persons will fall in the 25% federal tax rate, and let's guess that our state income tax rate is 3%. Gives us a marginal tax rate of 28%. We subtract.28 from 1.00 passing away.72 or 72%.

This means in which a non-taxable price of 3 or more.6% would be the same return as a taxable rate of 5%. That was derived by multiplying 5% by 72%.