For non-US residents, the US withholds 30% tax on dividends by default. If your country has a tax treaty with the US (South Korea, Japan, Brazil, Germany, and many others qualify), this is usually reduced to 15%. In many countries, you can claim a foreign tax credit for the withheld amount, effectively avoiding double taxation.
Our Snowball Calculator applies a 15% default tax rate – representative of the most common treaty rate. Always verify your specific country's rate with your local tax authority.