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US Dividend Withholding Tax Calculator for Foreign Investors
How much tax is withheld on US dividends?
Short answer: 30% by default for non-US persons. A tax treaty plus a filed W-8BEN reduces it — commonly to 15%, as low as 10% for Japan and Mexico, 25% for India. Countries with no US treaty, including Singapore, Hong Kong and most of the Gulf, pay the full 30% with no way to reduce it.
US dividend tax calculator
- Dividends per year
- $200
- US tax withheld (15%)
- $30
- You receive
- $170
- Yield after US tax
- 1.7%
Residents of the United Kingdom pay 15% with a valid W-8BEN instead of 30% without one — the form is saving you $30 a year on these numbers. US stocks from the United Kingdom.
Before any tax in your own country, which usually credits the US amount. Rates from IRS Tax Treaty Table 1, ordinary dividends. Not tax advice.
What it means for stock selection
If you face the full 30%, a 3% dividend yield is really 2.1% to you. That mathematically shifts the case toward companies that return cash through buybacks rather than dividends — buybacks are not withheld at all.
Where the withholding happens
At source. The money never reaches your account, so there is nothing to reclaim later in most cases. Getting the W-8BEN right before the dividend is paid is the entire game.
REITs are treated differently
REIT distributions are often taxed at higher rates than ordinary dividends for non-residents, and treaty relief is frequently narrower. Check before building a REIT income position from outside the US.
Where to do it
Frequently asked questions
How do I calculate US withholding tax on my dividends?
Multiply the dividend by your country's rate: 30% without a W-8BEN or treaty, or the treaty rate with one (15% for most of Europe, Canada and Australia; 10% for Japan and Mexico; 25% for India). $1,000 of dividends at 15% means $150 withheld and $850 received. The calculator on this page does it for any of the 34 countries we cover.
Can I reclaim over-withheld US tax?
It is possible through a US tax filing but rarely worth the cost for small amounts. Filing the W-8BEN correctly beforehand is the practical answer.
Are buybacks better than dividends for foreign investors?
For withholding purposes, yes — a buyback returns value through the share price, which is not subject to US withholding for non-resident individuals.
Reviewed October 2026. Information only — not investment, tax or legal advice.