Federal Tax Rates On Income, Dividends and Capital Gains through 2011
By Alan G. Orlowsky, J.D., C.P.A.
Top Tax Rates (in percent) for 2002 through 2011
| 2003-08 | 2009-10 | 2011 | |
|---|---|---|---|
| Ordinary Income | 35 | 35 | 39.6 |
| Qualified dividends | 15 | 35 | 39.6 |
| Capital gains* | 15 | 20 | 20 |
Tax brackets, dividend tax rates & capital gains tax rates (in percent) for 2002 through 2008
| 2003 through 2008 | ||
|---|---|---|
| Tax Brackets | Dividend tax rate | Capital gain tax rate* |
| 10 | 5 | 5 |
| 15 | 5 | 5 |
| 25 | 15 | 15 |
| 28 | 15 | 15 |
| 33 | 15 | 15 |
| 35 | 15 | 15 |
* On stock held long-term (more than a year) and sold after May 5, 2003. The rate on stock sold on or before May 5 is 20%.
(Source: Jobs and Growth Tax Relief Reconciliation Act of 2003)
About the Author
Alan G. Orlowsky, President of Orlowsky & Wilson, Ltd. in Lincolnshire, Illinois, has been counseling people on estate planning for 28 years. He previously worked for the IRS in its Estate and Gift Tax Division. He also worked for the Deloitte & Touche accounting firm, and he has taught taxation and accounting at Loyola University of Chicago, School of Business.
Al is a contributing author of the book 21st Century Wealth (Esperti Peterson Institute, Denver, 2000), and has written numerous articles on the subject of estate planning. Contact Alan Orlowsky by email or call 847-325-5559.
