Skip to main content
Calcimator

Withholding Tax Calculator

Calculate cross-border withholding tax on dividends, interest, and royalties with treaty rate reductions, gross-up costs, and foreign tax credit analysis.

Inputs

%
%
%

Results

Effective WHT Rate (%)

15%

Tax Withheld per Payment$15,000.00
Net Payment Received$85,000.00
Gross-Up Cost per Payment$0.00
Annual Tax Withheld$60,000.00
Annual Net Received$340,000.00
Annual Treaty Savings$60,000.00
Foreign Tax Credit$60,000.00
Net Tax Cost After Credit$0.00
Effective Tax Cost (%)0%
Payment LabelDividends
Annual Gross Up Cost$0.00
How to Use This Calculator
  1. Enter Gross Payment per Period ($), Payments per Year, and Payment Type (0=Div, 1=Int, 2=Roy).
  2. Set Domestic WHT Rate (%), Treaty WHT Rate (%), and Has Tax Treaty (1=Yes, 0=No).
  3. Adjust Gross-Up Required (1=Yes, 0=No), Foreign Tax Credit Available (%) as needed.
  4. Review the Effective WHT Rate (%) (%) result.
  5. Use Tax Withheld per Payment ($) and Net Payment Received ($) to inform your decision.

How the result changes with Treaty WHT Rate (%)

Treaty WHT Rate (%)Effective WHT Rate (%)
55%
1818%
3330%
4530%

What each input means

Gross Payment per Period ($)
Gross amount of each cross-border payment.
Payments per Year
Number of payments made annually (e.g., 4 for quarterly dividends).
Payment Type (0=Div, 1=Int, 2=Roy)
0 = Dividends, 1 = Interest, 2 = Royalties.
Domestic WHT Rate (%)
Standard withholding tax rate without treaty (e.g., US = 30%).
Treaty WHT Rate (%)
Reduced rate under the applicable bilateral tax treaty.
Has Tax Treaty (1=Yes, 0=No)
Whether a tax treaty exists between the two countries.
Gross-Up Required (1=Yes, 0=No)
If yes, payer bears the tax so the recipient receives the full gross amount.
Foreign Tax Credit Available (%)
Percentage of withholding tax creditable against home-country tax.

What each result means

Effective WHT Rate (%)
Applicable withholding rate after treaty reduction.
Tax Withheld per Payment
Withholding tax deducted from each payment.
Net Payment Received
Amount received after withholding tax.
Gross-Up Cost per Payment
Additional cost if the payer bears the withholding tax.
Annual Tax Withheld
Total withholding tax over the year.
Annual Net Received
Total net payments received over the year.
Annual Treaty Savings
Tax saved annually by applying the treaty rate.
Foreign Tax Credit
Amount creditable against home-country taxes.
Net Tax Cost After Credit
Remaining tax cost after foreign tax credit.
Effective Tax Cost (%)
Net tax cost as a percentage of gross payments.

How this is calculated

Worked example, using the default values

  1. Identify Input Parameters
    4 parameters
    Gross Payment per Period ($) = 100000, Payments per Year = 4, Payment Type (0=Div, 1=Int, 2=Roy) = 0, Domestic WHT Rate (%) = 30 = 8 input(s) provided
  2. Calculate Effective WHT Rate
    15 = 15%
  3. Calculate Tax Withheld per Payment
    Tax Withheld per Payment = grossPayment * (effectiveWhtPct / 100)
    15000 = $15,000
  4. Calculate Net Payment Received
    Net Payment Received = grossPayment - taxPerPayment
    85000 = $85,000

Engine last updated .

Related Calculators

The questions that sit next to this one — chosen by subject, including calculators filed under a different category.

International Finance

Double Taxation Relief Calculator

Compare credit method vs exemption method for double taxation relief. Calculate foreign tax credits, exemption with progression, and find the optimal relief strategy.

International Finance

Expatriate Tax Calculator

Estimate US expat tax obligations comparing FEIE (Foreign Earned Income Exclusion) vs Foreign Tax Credit strategies with housing exclusion and self-employment tax.

Tax Planning

International Tax Calculator

Calculate Foreign Tax Credit (FTC) limitations and GILTI inclusions for US taxpayers with foreign-source income.

Tax Planning

Tax Withholding Calculator

Estimate whether your W-4 withholding will result in a refund or balance due, and get per-paycheck adjustment suggestions using 2026 federal brackets.

International Finance

Cross-Border Payment Cost Calculator

Compare total costs across SWIFT wire, SEPA, online transfer services, and card payments including fees and FX spread.

More in Budgeting & Personal Finance.