For 2014, the tax rate on qualified dividends was between 0 and 20 percent, the same rate as long-term capital gains, reports the Internal Revenue Service. The government taxed nonqualified dividends at the taxpayer’s nominal tax rate, from 0 to 39.6 percent.
Taxpayers in the 10 or 15 percent tax bracket paid no tax on qualified dividends; those in the 25 to 35 percent brackets paid 15 percent. The 20 percent rate applied to dividends the government would have taxed at 39.6 percent if a special rate didn't exist, according to the IRS. For these high-income taxpayers, dividends were also subject to a 3.8 percent net investment income tax.
This tax treatment continues to apply in 2015, according to the Charles Schwab Corporation.