Qualified Dividends and Capital Gain Tax Worksheet 2025

Updated October 2, 2026. Quick answer: This worksheet in the 2025 Form 1040 instructions figures the tax on line 16 when you have qualified dividends or net capital gain. Income up to the line 6 amount is taxed at 0%, the next slice up to the line 13 amount at 15%, and anything above at 20%. For 2025 returns the line 6 amount is $48,350 for single or separate filers, $96,700 for joint filers and $64,750 for head of household.

IRS worksheets from the 2025 Form 1040 instructions, read line by line: Tax Computation Worksheet, Schedule D Tax Worksheet and Form 1040 worksheets.

Foreign tax credit (Form 1116) and alternative minimum tax (Form 6251) for 2025, read line by line: Form 1116 lines 15 to 19 and Form 6251 Part III.

Schedule D and Schedule E (Form 1040) for 2025, read line by line: Schedule D line 18, Schedule D line 20 and Schedule D lines 21 and 22.

Form 1040 for 2025, lines 12 to 38 read line by line: Form 1040 line 16.

When this worksheet is the one to use

The Form 1040 instructions send some filers to the Schedule D Tax Worksheet first. If that does not apply, the next worksheet applies if any of these is true: “You reported qualified dividends on Form 1040 or 1040-SR, line 3a.” “You don’t have to file Schedule D and you reported capital gain distributions on Form 1040 or 1040-SR, line 7a.” “You are filing Schedule D, and Schedule D, lines 15 and 16, are both more than zero.” The Schedule D Tax Worksheet cases are on the Schedule D page.

The 2025 forms and instructions are the revision the IRS serves at the time this page was read (October 2, 2026), and they are the ones used for returns filed in 2026. A later revision may renumber lines, so check the line numbers against the form you are holding.

Lines 1 to 5: the setup

The worksheet starts with taxable income and the gain pieces. Line 1 is “Enter the amount from Form 1040 or 1040-SR, line 15.” Line 2 is “Enter the amount from Form 1040 or 1040-SR, line 3a”, the qualified dividends. Line 3 depends on Schedule D: “Enter the smaller of line 15 or line 16 of Schedule D. If either line 15 or line 16 is blank or a loss, enter -0-.” Without Schedule D it is the line 7a amount. Line 4 is “Add lines 2 and 3”, and line 5 is “Subtract line 4 from line 1. If zero or less, enter -0-”. Line 5 is the part of taxable income treated as ordinary.

Lines 6 to 9: the 0% slice

Line 6 is the 0% breakpoint. The worksheet prints three amounts: “$48,350 if single or married filing separately, $96,700 if married filing jointly or qualifying surviving spouse, $64,750 if head of household.” Then line 7 is “Enter the smaller of line 1 or line 6”, line 8 is “Enter the smaller of line 5 or line 7”, and line 9 is “Subtract line 8 from line 7. This amount is taxed at 0%”.

Lines 10 to 18: the 15% slice

Line 10 is “Enter the smaller of line 1 or line 4” and line 12 is “Subtract line 11 from line 10”. Line 13 is the top of the 15% range: “$533,400 if single, $300,000 if married filing separately, $600,050 if married filing jointly or qualifying surviving spouse, $566,700 if head of household.” Lines 14 to 17 compare that limit with taxable income, ending in line 17, “Enter the smaller of line 12 or line 16”. Then line 18: “Multiply line 17 by 15% (0.15)”.

Lines 19 to 25: the 20% slice and the final tax

Line 19 is “Add lines 9 and 17”, line 20 is “Subtract line 19 from line 10”, and line 21 is “Multiply line 20 by 20% (0.20)”. Line 22 figures regular tax on line 5 using the Tax Table or Tax Computation Worksheet, and line 23 adds lines 18, 21 and 22. Line 24 figures regular tax on all of line 1, and the worksheet ends with line 25: “Tax on all taxable income. Enter the smaller of line 23 or line 24.” The line 25 result goes on line 16 of Form 1040. Because it is the smaller of two figures, the worksheet cannot raise tax above the ordinary-rate result.

The breakpoints: 2025 returns and 2026

The 2025 amounts are the ones printed in the worksheet. The 2026 amounts come from Revenue Procedure 2025-32, which says “For taxable years beginning in 2026, the maximum zero rate amounts and maximum 15 percent rate amounts under § 1(j)(5)(B), as adjusted for inflation, are as follows:”

The 2026 figure for single filers is the revenue procedure’s row for all other individuals. The 2026 amounts apply to returns for tax year 2026, filed in 2027, and do not change a 2025 return. See also the long-term capital gains brackets page.

Common mistakes

• Applying the 2026 breakpoints to a 2025 return. The worksheet for 2025 uses its own printed amounts.
• Treating the 0% amount as a limit on gains alone. The worksheet compares total taxable income on line 1 with the line 6 amount.
• Using this worksheet when the Schedule D Tax Worksheet or the foreign earned income worksheet is the required one.

Related: Schedule D explained, long-term capital gains brackets, 1099-DIV boxes 1a and 1b, and the dividends versus ordinary income comparer.

Sources

• 2025 Instructions for Form 1040: https://www.irs.gov/pub/irs-pdf/i1040gi.pdf
• Revenue Procedure 2025-32: https://www.irs.gov/pub/irs-drop/rp-25-32.pdf

Read from the IRS documents linked above on October 2, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the account provider or the IRS is the right place to confirm anything consequential.